http://www.pacificislands.cc/pm22001/pmdefault.cfm?articleid=16

Pacific Notes
May 2002


Samoa Refuses to Release $14
M 
The $14 million seized by the
Samoa Government from accounts
in Apia banks last May is assumed
by the Samoa Supreme Court to be
"proceeds of crime" and won't be
released. Private International
Development Bank of American
Samoa - which recently had its
articles of incorporation revoked by
American Samoa Governor Tauese
Sunia - has threatened suit to get
its money back, and has denied
wrong-doing. The company and
several Americans are the target of
a joint FBI/Securities and Exchange
Commission probe.

The action is part of Samoa's
get-tough policy on money
laundering. New anti-money
laundering legislation went into
effect in June that complies with
requirements of the international
Financial Action Task Force
(FATF), according to Papali'i
Scanlan, chief executive officer of
the government-owned Central
Bank of Samoa. Two years ago,
FATF placed Samoa on its
"black-list" of countries with
possible money laundering
activities and inadequate
anti-money laundering laws - but
Samoa was removed from the
blacklist the following year, an
action Scanlan said "is an
indication that Samoa takes its role
as a responsible member of the
international community seriously."
The $14 million allegedly originated
with an illegal investment scheme
cooked up by three Americans to
bilk U.S. investors, according to
George Latu, State Solicitor at the
Attorney General's Office in Apia.
"Eventually the money will be
released to the U.S. government
(and then returned) to the investors
who knew nothing about the
scheme."

The money was seized at the
request of the U.S. government.
According to Latu, all of the $14
million in Apia is from the same
three promoters, who have links to
William Cravens, a former
American Samoa resident who is
the president of PIDB. The U.S.
District Court for the Western
District of Washington State has
issued an injunction against the
three promoters of the scheme, who
the Seattle Times named as John
Wayne Zidar, John Wesley
Mathews and Elizabeth Anne
Phillips. The SEC and FBI believe
the scheme has bilked investors out
of $30-$50 million. Samoa Supreme
Court Chief Justice Patu F.
Sapolu's rejection of a PIDB
motion to release the money was
based largely on an affidavit from
FBI agent David Rubincam, who
says the promoters told potential
investors their funds would be
invested offshore and would
generate a 120 percent return after
only a year. Instead, funds were
used by promoters to pay their own
salaries and commissions, and to
purchase expensive cars and two
houses in Arizona. 

- Fili Sagapolutele