2 New Federal Criminal Cases; 2 New Criminal Warrants; All Sealed

The federal grand jury Wednesday last week handed down two criminal indictments that the U.S. District Court of Guam sealed. Yesterday the U.S. Attorney’s Office for Guam and the NMI secured two warrants, both filed under seal. It is unclear what the relationships of these cases and warrants are to each other, if any, or whether any of these sealed cases has anything to do with the much-anticipated news of federal corruption charges related to Pandemic Unemployment Assistance fraud.

[Editor’s note: If you believe you have been targeted to act as a money mule or a victim of identity theft related to fraudulent unemployment insurance claims, report the fraud to the Guam FBI Office at (671) 472-7465. As a former victim of federal crime involving government corruption, I attest and can assure you that the FBI is here to help you.]

The FBI raided businesses associated with a close relative of Lt. Governor Joshua Tenorio on August 19, then subpoenaed records from several government of Guam agencies – including the Guam Department of Labor – in its investigation into PUA fraud. PUA was a federal program that provided half a billion dollars in unemployment aid to Guam residents who lost income as a result of COVID-19. It was administered by GDOL.

Since the raids, federal agents have questioned several PUA recipients who received aid connected to assistance from the lieutenant governor’s relative.

Scheme victims believe the Leon Guerrero-Tenorio administration is attempting to intimidate them from cooperating with a federal investigation into the scheme by making demands for full repayment of PUA funds they received during the pandemic. Since the raids, the local government has targeted the alleged victims, twice demanding full repayment in letters that lack any reason or justification given for GDOL’s allegation of overpayment.

Director of labor David Dell’Isola has dismissed Kandit’s Freedom of Information Act request for documents related to its demands, citing a federal law that does not expressly prohibit the release of the documents Kandit requested in October.

Kandit copied the FBI, the U.S. Attorney’s Office, and Attorney General Douglas Moylan on its communications with Mr. Dell’Isola so that authorities are aware of the local government’s movements in the wake of the raids on the highly placed targets of the investigation.

No Federal Detentions Since Last Tuesday

Normally when the federal grand jury hands down an indictment, it is sealed at least until the U.S. Attorney’s Office secures an arrest warrant, then federal marshals find an arrest the defendants. Otherwise, the court issues a summons for the defendants to appear to answer to the charges for the first time.  Arrested defendants can either be sent into federal detention under the custody of the Guam Department of Corrections, or they can be released. Typically, defendants who are released on the same day they are arrested have cooperated with federal law enforcement and agree to become confidential sources and to work for federal agents in taking down other targets.

Kandit reviewed the rosters of federal detention since last Wednesday. There have been no new federal detainees between then and Monday. A DOC official confirmed that no federal arrestee was brought to the detention center then released immediately, despite the filing of the two new criminal cases Wednesday.

On Monday, the federal court issued two sealed warrants. Federal warrants are requested by federal law enforcement, asking the court to grant law enforcement the ability to search and seize property, or to search and arrest people. It is not possible to legally review sealed court documents.