HEAD OF DEFUNCT PALAU BANK FACES NEW CHARGES

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By Bernadette H. Carreon

KOROR (Palau Horizon, Aug. 6) — More charges have been brought against the former President of the defunct Pacific Savings Bank including charges against three former bank employees.

Mack Timothy Taunton has been charged with six counts of cheating, six counts of embezzlement, one count of forgery, 18 counts of money laundering and one count of conspiracy.

Based on Criminal Case No. 07-156, former employee John DeVivo is facing charges of two counts of cheating, two counts of embezzlement, two counts of forgery, six counts of money laundering and two counts of conspiracy.

Deborah Rengiil on the other hand is charged with seven counts of cheating, seven counts of embezzlement, two counts of forgery, 21 counts of money laundering and two counts of conspiracy.

Margo Llecholch meanwhile is facing two counts of cheating, two counts of embezzlement, two counts of forgery, six counts of money laundering and two counts of conspiracy.

According to the affidavit of probable cause executed by Detective Margarete Martin, she has investigating an entity called "Alphabeta Insurance Limited that was allegedly formed to provide medical insurance to the staff of the PSB.

The investigation revealed that PSB contributes 100 percent of the premiums to the Alphabeta for all its employees and then get 80 percent of their costs reimbursed from the Alphabera savings or checking accounts at PSB.

The investigation further revealed that the supposed company never registered as a legal business establishment and corporation.

The affidavit said that is has never been registered as a company, never paid any taxes including gross revenue or social security taxes.

The affidavit further showed that the supposed company had a PSB account with the bank opened in 1998 and closed on January 14, 2002.

The affidavit said that withdrawals were made on July 26, 2001 and October 12, 2001, November 23, 2001, and December 17,2001.

The affidavit said that on each of these dates there were two separate withdrawals on each of these dates, the withdrawals, one for $330 and one for $300.

On each of these dates, the withdrawal for $330 went to the payment of Rengiil’s personal loan account and the withdrawal of $300 went to Taunton’s personal account.

The affidavit also said that the company has two loans with PSB, with De Vivo, Llecholch and Rengiil signing the agreement.

The affidavit said that the company opened a checking account on Dec. 28,2001 a few days after the three officers signed the promissory note for the two loans.

The affidavit said that Taunton and Rengiil had personal loans with PSB and that Alphabeta Insurance payments were made on Taunton and Rengiil. In effect Taunton and Rengiil with the assistance of De Vivo, Llecholch used PSb’s deposit money to pay off their personal loans and concealed the illegal nature of their actions by using the fictitious corporation to complete their fraudulent transactions.

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