The Guam director of labor – David Dell’Isola – has refused Kandit’s request made under the Freedom of Information Act for the demand letters his agency has issued to victims of PUA fraud that is under federal investigation.
Victims of an alleged PUA fraud scheme 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. Victims received letters from the local agency AFTER public knowledge of the federal investigation.
In a reply to Kandit’s FOIA, Mr. Dell’Isola wrote, “Federal regulations 20 CFR § 603 prohibit a state agency administering Pandemic Unemployment Assistance funds from disclosing information obtained, made, and maintained by the state agency as such information is confidential, therefore, pursuant to 5 GCA 10108(i), the records you seek are exempt from disclosure.”
However, the federal regulations Mr. Dell’Isola cited, which encompass details of what information is confidential and what PUA information can be disclosed, say nothing prohibiting his agency from releasing the demand letters, so long as names and addresses are redacted. Guam’s FOIA demands the release of documents upon request, even if those documents contain non-releasable information, such as names, social security numbers, and phone numbers. In instances where documents contain information like that, the agency has a duty to redact such information and then to release the document.
[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 PUA fraud case involving a close relative of the lieutenant governor
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 stands for Pandemic Unemployment Aid, 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.
The letters were sent to at least some of these victims in early September, according to the records Kandit has reviewed. These letters are dated and unsigned, but typed on GDOL letterhead. They contain threats of further action if the money is not repaid.
The fact that the local government letters were issued only after the federal investigation became known to the targets of the criminal case (targets who are very close to Mr. Tenorio), have increased the victims’ suspicion that the demands are only being made to cover wrongdoing by labor department officials involved in the alleged fraud, and to intimidate the victims from speaking to FBI agents.
Kandit has asked labor director David Dell’Isola to respond to the allegations, but a previous inquiry to him about the fraud case resulted in Mr. Dell’Isola’s insistence that he is unable to comment on the investigation, or even to confirm that one exists. And the governor’s director of communications, Krystal Paco-San Agustin, is refusing to say whether Governor Lou Leon Guerrero has ordered her cabinet and staff to cooperate with the federal investigation.
But according to multiple sources, Mr. Dell’Isola has been interviewed by the FBI.
“GDOL is unable to comment on any investigation that may or may not be occurring,” Mr. Dell’Isola told Kandit.
We pushed the matter through mobile text with the labor director, asking him:
“But wouldn’t a federal inquiry into the alleged abuse of federal funds be a matter of public interest? Why can’t GDOL comment? Have you been instructed by the FBI or the [U.S. Attorney] not to comment?”
“Also, my sources tell me you have been interviewed by the FBI in relation to the lieutenant governor and people surrounding him. What can you tell us about that interview?”
“Are you at least able to confirm for us that you are NOT the subject of a federal investigation into PUA fraud?”
He read, but did not reply to the follow up questions.
Asked two weeks ago “What is the extent of the governor and lieutenant governor’s knowledge of the federal PUA investigation,” Ms. Paco-San Agustin answered with a caveat:
“No agencies have received a federal grand jury subpoena to the best of my knowledge.”
Kandit pushed, telling the governor’s chief spokesperson of our knowledge of public agencies being subpoenaed for records related to the PUA fraud case. She again replied with a caveat:
“Again, I am not aware of any subpoenas,” she said. “Grand jury proceedings are typically confidential so even if there were a grand jury proceeding, I wouldn’t be privy to that information.”
Ms. Paco-San Agustin did confirm that no one at the governor’s office had been interviewed by either the FBI or the U.S. Attorney about the case, and neither was the governor’s office subpoenaed for records. Asked whether anyone at the governor’s office was requested for interview by the Feds, she replied, “Not that I’m aware of.”
Asked, “Is the governor aware of the investigation and has she directed agency directors to cooperate,” she did not reply.
Multiple sources have confirmed that government employees who led and staffed the former PUA office under Mr. Dell’Isola’s labor department have been questioned by the FBI, with at least one high level official believed to be cooperating with the investigation into higher officials.
According to GDOL reports, the PUA office administered more than half a billion dollars in federal pandemic unemployment aid to residents.
The alleged fraud occurred in the lead up to the 2022 gubernatorial election which resulted in the nomination of Lou Leon Guerrero and Joshua Tenorio over Michael San Nicolas and Sabrina Salas Matanane, and then to the Democrat ticket’s reelection against Republicans Felix Camacho and Tony Ada.
Mr. San Nicolas, Ms. Salas Matanane, Mr. Camacho, and Mr. Ada’s campaigns had accused the governor and lieutenant governor of corruption.
Mr. Tenorio is one of two announced candidates for governor in 2026. The other is Republican Charlie Hermosa, who was the first to publicly release information about the federal PUA fraud case.
No federal official has confirmed the existence of the investigation, which is a longheld standard of the federal criminal justice system. Details of cases are only ever confirmed in writing by federal officials whenever an indictment or an information on the case becomes publicly accessible. The information Kandit has received and has been able to report on comes from multiple witnesses who have confirmed events.
