THE District Court for the Northern Mariana Islands has scheduled a bench trial for 10 a.m. on Oct. 5, 2026, to determine the fate of more than $310,000 seized from two Bank of Saipan accounts linked to Marianas Consultancy Services and its owner, Alfred Yue.
Federal prosecutors allege the funds were part of a broader conspiracy involving wire fraud, money laundering, and bribery aimed at influencing CNMI government officials in favor of casino developer Imperial Pacific International.
At a recent management conference, Chief Judge Ramona V. Manglona directed the parties to submit initial disclosures via email and placed the case on the standard litigation track. She reminded both sides that the scheduling order may not be modified without good cause.
In April, the court issued a second warrant of arrest in rem for the funds, originally seized in 2019, following an amended complaint for forfeiture filed by the U.S. Attorney’s Office for the Districts of Guam and the NMI.
A warrant of arrest in rem authorizes the seizure of property rather than the arrest of a person. Forfeiture in rem is a legal process in which property is seized due to its alleged connection to criminal activity.
In the first amended verified complaint, Assistant U.S. Attorney Mikel W. Schwab sought forfeiture of $271,087.88 and $39,188.38 from two MCS accounts at the Bank of Saipan. The warrant directs the U.S. Marshals Service or other authorized law enforcement to take possession of the funds.
The amended complaint stems from an investigation by the FBI and IRS-Criminal Investigation into a suspected conspiracy involving foreign entities and individuals in the CNMI to commit wire fraud and money laundering.
According to the complaint, the scheme involved transferring funds — often via international wire — to promote illegal efforts to influence CNMI officials in exchange for preferential treatment, thereby depriving citizens of their right to honest government services.
The complaint alleges that MCS, incorporated for banking, financial services, real estate development, and business management, was owned and operated by “A.Y.,” who was the sole signatory on both accounts.
It also identifies four unnamed individuals:
“Individual 1” and “Individual 2” are CNMI residents and business partners.
“Individual 3” and “Individual 4” are CNMI residents and political figures who, during the relevant period, owed fiduciary duties to the public.
The complaint references a company building a resort and casino in the CNMI. IPI is the only firm licensed by the CNMI government to operate a casino in Saipan. It operated for four years before closing in March 2020 due to the Covid-19 pandemic restrictions.
In response to the amended forfeiture complaint, MCS and A.Y., represented by attorney Mark Hanson, claimed ownership of the seized funds and denied allegations of conspiracy, wire fraud, money laundering, and bribery.
The claimants acknowledged having a consulting agreement with IPI and its parent company and receiving fees deposited into the two Bank of Saipan accounts. A.Y. also admitted to making “various donations and contributions from his own money” prior to June 2014.
The claimants requested full discovery and a bench trial on the forfeiture claim.
“Claimants pray that the [U.S.] Government’s forfeiture is denied and that the [U.S.] Government release to MCS the funds it wrongfully seized and retained. They also pray for interest thereon and for the payment of attorney’s fees and costs incurred to date in their effort to reclaim the wrongfully seized funds,” Hanson stated.
Should the U.S. government prevail on any portion of its complaint, Hanson argued, “Claimants expressly plead pursuant to Fed. R. Civ. P. G(8)(e) and 8 that the amount forfeited would constitute an excessive fine, punitive in nature, and disproportionate to the gravity of any possible offense.”
