CA freezes accounts of trader facing money laundering raps in Guam

The Court of Appeals has ordered two banks to freeze for 20 days the accounts of a medical supplier allegedly involved in wire transfer fraud and money laundering in Guam. Covered by the 16-page order of the appellate court’s Second Division were the accounts of Rosalito Ramos Nucum in Metrobank and in Planters Development Bank-Angeles. “In order to avoid the possibility of the funds in the subject bank accounts [from] being withdrawn, removed, transferred, concealed, and placed beyond the reach of law enforcers, we find appropriate and judicious the issuance of a freeze order," said the court. A summary has also been set for a possible extension of the 20-day freeze order. Case records showed that Nucum owned and operated Lindley Distributors, a pharmaceutical and medical supply company licensed to do business in Guam and in the Philippines. A federal grand jury in Guam earlier indicted Nucum on five counts of wire transfer fraud and six counts of money laundering, for collecting payment from the Chuuk State Government and the US Government for medical supplies which he never delivered. The jury found "probable cause" to indict Nucum after he was found to have spent the amount he earned from the undelivered supplies to develop a memorial garden park and cemetery in the Philippines. 75% of purchase order In June 2006, purchase orders worth $394,340.65 were issued to Lindley Distributors with the Chuuk State Department of Health issuing advance payments equivalent to 75 percent of the purchase order, or $295,755.49. However, only $89,893.76 worth of supplies were actually delivered by Lindley to the Chuuk State Health Department. The CA freeze order stemmed from a request by the Anti-Money Laundering Council. The Philippine government stepped in on Nucum's case after being sought for assistance by the US Justice department, the US Attorney for the District of Guam, and the US Department of Interior Office of Inspector-General, with the assistance of the Attorney General’s Office of the Chuuk State Government, Federated States of Micronesia. The Philippine government acted along the lines of the RP-US Treaty on Mutual Legal Assistance in Criminal Matters. — VS, GMA News