Butalid’s mother also agrees to plea deal; sentencing set for March 2026

11/07/2025 - Clarissa Adlawan has followed in her daughter’s footsteps and agreed to a plea deal after both were accused in a wide-ranging federal fraud scheme involving the Public School System.

During a change-of-plea hearing before the U.S. District Court for the Northern Mariana Islands last Nov. 4, Adlawan pleaded guilty to two counts in an indictment filed by the U.S. Attorney’s Office—Count 1: Conspiracy to Commit an Offense Against the United States, in violation of 18 U.S.C. § 371, and Count 7: Money Laundering Conspiracy, in violation of 18 U.S.C. § 1956(h).

Chief Judge Ramona V. Manglona found Adlawan fully competent to enter a knowing and voluntary plea and adjudged her guilty. The court then unsealed the plea agreement and vacated the previously scheduled jury trial.

Adlawan’s sentencing is set for March 6, 2026—the same date as that of her daughter, Giselle Butalid, who entered an identical plea last Oct. 22. Like her mother, Butalid pleaded guilty to Counts 1 and 7 of the indictment.

Under the plea deal, Adlawan was made to understand that Count 1 is a Class C felony punishable by up to five years in prison and a $250,000 fine.

Meanwhile, Count 7 is also a Class C felony with a maximum of 20 years in prison and a $500,000 fine, or twice the amount of funds involved, whichever is greater.

If imprisonment is imposed, the plea deal also said the court may order up to three years of supervised release, and violations can result in additional imprisonment without credit for prior supervision time. Each count carries a mandatory $100 special assessment, totaling $200.

Regarding immigration consequences, Adlawan was made aware that pleading guilty may have consequences with respect to her immigration status if defendant is not a citizen of the United States. Under federal law, a broad range of crimes are removable offenses.

According to federal prosecutors, Adlawan and Butalid conspired to defraud the United States through a scheme that diverted $262,788 in federal funds over the course of a year. The money was allegedly funneled through One Legacy Corp., a private company controlled by Adlawan, which received government contracts worth “hundreds of thousands of dollars.”

A search of the defendants’ Saipan apartment reportedly uncovered 66 designer handbags and 160 pieces of jewelry, which prosecutors say were purchased using proceeds from the fraudulent transactions.

The indictment also charges Adlawan with additional counts—money laundering, illegal monetary transactions, and structuring transactions to evade reporting requirements—under Counts 8 to 12, along with a notice of forfeiture under Titles 18 and 31 of the U.S. Code.

Butalid, who previously worked under PSS’ Office of Curriculum and Instruction, was responsible for maintaining records and data for federal grant projects. The indictment states that her position gave her access to sensitive information, including electronic signatures, vendor invoices, and funding data—access that allegedly allowed her to manipulate the procurement process for personal gain.

Following the Nov. 4 hearing, the court allowed Adlawan to remain free pending sentencing. Her attorney, Mark Scoggins, successfully requested that her $9,000 bond be converted into an unsecured bond. Assistant U.S. Attorney Eric O'Malley did not object, and Probation officer Gregory F. Arriola took no position.

Scoggins also sought court approval for Adlawan to sell a property in the Philippines to help make restitution payments. Manglona deferred ruling on that request but granted the motion to modify Adlawan’s release conditions.

Report by Mark Rabago