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10/23/2025 - U.S. District Court for the Northern Mariana Islands Chief Judge Ramona V. Manglona has accepted the guilty plea of former Public School System employee Giselle Butalid during her change-of-plea hearing on Oct. 22.
The accused, who swapped her red overalls for a green jumpsuit after being released on a $9,000 bond, pleaded guilty to two counts in the 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).
Attorney Joey Patrick San Nicolas represented Butalid, while Assistant U.S. Attorney Eric O’Malley appeared for the government.
The plea agreement introduced a new wrinkle in the case, as Butalid admitted that the crimes charged were part of a broader scheme that continued during and after the offenses involving PSS and extended to the Department of Community and Cultural Affairs.
“Although the United States has conditionally agreed not to bring charges against defendant for that conduct, defendant acknowledges and agrees that any amount of loss attributable to that course of conduct may be included for purposes of restitution,” the plea deal stated.
Manglona set sentencing for March 6, 2026. In the meantime, Butalid remains free. San Nicolas requested the court’s indulgence to allow his client more time to surrender her Philippine passport, which she said she has been unable to locate.
Although she holds a U.S. passport, Butalid is a dual citizen of the United States and the Philippines.
Under the plea deal, Butalid acknowledged that Count 1 is a Class C felony punishable by up to five years in prison and a fine of up to $250,000. Count 7 is also a Class C felony, carrying a maximum sentence of 20 years in prison and a fine of up to $500,000—or twice the value of the funds involved, whichever is greater. The plea agreement was immediately unsealed after Manglona accepted her guilty plea.
Butalid also agreed to forfeit any property—real or personal—derived directly or indirectly from the proceeds of the conspiracy and theft concerning programs receiving federal funds, as well as any property involved in the money laundering conspiracy.
Before adjourning, Manglona reminded both parties that once a sentence is imposed, they have no later than 90 days to determine the final amount of restitution.
According to the indictment, Butalid and her mother, Clarissa Adlawan, conspired to defraud the United States in Counts 1–7 (conspiracy and theft of federal program funds), and committed money laundering conspiracy, illegal monetary transactions, and structuring transactions to evade reporting requirements under Counts 8–12 (Adlawan only). A notice of forfeiture under Titles 18 and 31 was also included.
The indictment alleges that Butalid and Adlawan fraudulently diverted a total of $262,788 over the course of a year through transactions involving One Legacy Corp., a private company controlled by Adlawan. One Legacy received government contracts worth “hundreds of thousands of dollars.” A search of their Saipan apartment turned up 66 designer handbags and 160 pieces of jewelry.
Butalid previously worked under PSS’ Office of Curriculum and Instruction, where her duties included maintaining accurate records and data for federal grant projects and reporting this information to the grant director.
The indictment stated that this position gave Butalid access to sensitive information—such as electronic signatures of OCI managers, vendor invoices, and funding data—that enabled her to exploit PSS’s procurement process.
Marianas Press tried to interview Butalid outside the district court after the hearing, but her only comment was “no comment” while hurriedly boarding a taxi cab.
Report by Mark Rabago
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