Embedded Files
5/30/2025—Commonwealth Casino Commission chair Edward C. DeLeon Guerrero expressed deep frustration during a board meeting last May 29 over the continued absence of legal representation from the Office of the Attorney General, warning that the situation leaves the CCC vulnerable as the sale of Imperial Pacific International (CNMI) LLC’s assets to Team King Investment moves forward in federal court.
“This is very discouraging,” said DeLeon Guerrero at the CCC's monthly board meeting at Springs Plaza. “When you hear that your own legal counsel is really not giving you proper legal advice, it’s disheartening. If I had a choice and I were a private entity, I’d fire the lawyer.”
For the second straight month, no attorney from the OAG attended the CCC meeting despite repeated requests. DeLeon Guerrero said he had submitted a formal letter on May 20 to Attorney General Edward Manibusan requesting clarification on several implications of a May 1, 2025 federal order approving Team King Investment as the winning bidder in IPI’s bankruptcy auction.
The CCC chair emphasized that the commission, by law, depends on the AG’s office for legal counsel—especially critical now that Team King has until June 12, 2025 to fulfill conditions of the purchase. DeLeon Guerrero said the CCC must begin preparing to conduct due diligence on the potential new casino operator but is being told to wait until the sale is finalized.
“Right now, the casino license is being tossed up in the air to be transferred from one entity to another. Guess who's going to do the due diligence? The CCC. And we cannot come in the 11th hour—we must be on top of this process,” he said.
The CCC is also trying to recover over $20 million in regulatory and casino license fees owed by IPI, which could be used as leverage in negotiations with Team King. The federal court’s May 1 order approved the asset sale for $12.9 million, but questions remain about how much—if any—the CCC will recover under pro rata distribution rules.
“If Tim King wants to assume [IPI’s obligations] and obtain the license, we need to discuss how they plan to pay that $20 million,” Deleon Guerrero said. “The AG’s office has not clarified what the cure amount is, if any, and that’s unacceptable.”
DeLeon Guerrero also invited CCC commissioners to attend the upcoming June 13 federal court hearing on the status of the sale to Team King. He said that’s when the court will determine whether the sale is complete and how the $12.9 million will be distributed to creditors. The CCC's regulatory oversight would kick in once the transfer is finalized and Team King formally applies for a license.
“The concern raised by commissioner [Thomas] Manglona is valid: Can we be more proactive and reach out to Team King? The AG’s office told us, no—it would be premature,” the chairman said. “That is why we need legal guidance now, not later.”
Separately, the CCC is preparing to sue the Department of Finance for refusing to release $250,000 in back pay for commissioners. DeLeon Guerrero said the funds were appropriated under Public Law 24-1, but the OAG advised Finance not to remit the payment, calling the law unconstitutional.
“We are considering litigation because this is an illegal impoundment of funds,” he said. “The Legislature passed the law, the governor signed it, and the AG is advising Finance not to release the funds. That’s not how governance works.”
The CCC is seeking private legal counsel for the lawsuit and has compiled documentation to support its position, including letters, payment requests, and Finance’s refusal—since OAG will be representing Finance if the latter pursues the legal route to recoup back pay.
Vice chair Ralph Demapan added that the Senate may submit a certified legal question to the CNMI Supreme Court for clarity on Public Law 24-1. However, such a process requires two opposing parties—one of which must argue the law is unconstitutional, which so far only the AG's office has done.
Throughout the meeting, DeLeon Guerrero criticized the OAG for failing to keep the commission informed. He cited instances where CCC found out about legal developments—such as stipulations in federal court—through other attorneys or the media.
“It’s pathetic that we read about decisions in the newspaper instead of hearing it from our legal counsel,” he said. “We are supposed to be consulted. We are their client.”
He also warned that the CCC’s lack of legal counsel could delay or derail future regulatory action, including vetting Team King’s qualifications.
“We look forward to the day we can have our own competent counsel. We’re doing everything out of pocket right now—even printing our own documents,” he said.
Despite limited resources, the commission is determined to play its role in holding Team King accountable if it assumes IPI’s license. According to DeLeon Guerrero, CCC still has the authority to negotiate the terms of that license transfer and enforce payments owed by IPI.
The OAG said they’ve already explained their reasons for not assigning counsel to CCC and the status of the cases in letters addressed to DeLeon Guerrero on May 6, 2025 and May 27, 2025.
Story by Mark Rabago
Report abuse