Last Thursday, FBI agents executed a series of raids on the office and home of the governor of Saipan as well as offices associated with local casino operator Imperial Pacific International (IPI). Saipan is part of the Commonwealth of the Northern Mariana Islands (CNMI), a U.S. territory in the Western Pacific.
Few details were immediately available about the raids, which included the seizure of phones, the examination of computer files and interrogations of government workers.
According to news reports, IPI’s finance and human resources office and the office of IPI consultant Alfred Yue were also searched. Lieutenant Governor Arnold Palacios said Governor Ralph Torres and his staff members are cooperating with investigators.
“We have provided them with all the information and access that they have asked for, with the intent of being completely transparent and helpful in the investigation,” he said.
Torres added, “In every opportunity I have been given to serve this community, I have raised my hand and have sworn an oath to uphold the constitution. A part of this oath is to respect our system of laws and to allow these processes to take their course.
“As information is provided, I will continue to do what I have always done, which is to support the goals and aspirations of the people I serve and to remain worthy of this privilege that has been given to me. For this reason, I look forward to continuing to do this important work with the utmost integrity.”
IPI released a statement the day of the raids denying any wrongdoing
“First, our companies have nothing to hide and will cooperate with law enforcement authorities,” the statement said. “Secondly, we want assure the people of the CNMI that we continue to be law-abiding and good corporate citizens who are proud and privileged to be members of the CNMI.
“Finally, we want assure our employees, their families, vendors, patrons and residents alike that our companies are intent on succeeding and making the CNMI the jewel of the Pacific for our emerging gaming industry.”
This isn’t the first time the casino operator has drawn the scrutiny of law enforcement. FBI agents reportedly raided its offices in 2017 and 2018, and the company has been roundly criticized for delays in construction of its Imperial Palace resort; its use of illegal workers; massive uncollected VIP debts; and other financial irregularities.
IPI posted losses of nearly HKD1.88 billion (US$240.3 million) for the first half of 2019, compares with a profit of approximately HKD79.0 million in the prior-year period.
