KSA Corporation v. Hun

CourtDistrict Court, Northern Mariana Islands
DecidedJanuary 4, 2018
Docket1:16-cv-00015
StatusUnknown

This text of KSA Corporation v. Hun (KSA Corporation v. Hun) is published on Counsel Stack Legal Research, covering District Court, Northern Mariana Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KSA Corporation v. Hun, (nmid 2018).

Opinion

FILED Clerk District Court JAN 04 2018 for the Northern Magana Islands ye IN THE UNITED STATES DISTRICT COURT (Deputy Clerk) 1 FOR THE NORTHERN MARIANA ISLANDS 2 3 KSA CORPORATION and IL HWAN KIM, Case No.: 16-cv-00015 4 Plaintiffs, 5 VS DECISION AND ORDER GRANTING DEFENDANT SALAS’S MOTION FOR 6 || JIN AN HUN, EUN TAEK JEONG, JOANN SUMMARY JUDGMENT P. HENSLEY, OSCAR M. BABAUTA, 7 RAMON S. SALAS, and DOES 1-10, 8 Defendants. 9 10 I. INTRODUCTION 11 Plaintiffs KSA Corporation and its president Il Hwan Kim have brought a civil RICO claim two claims under the law of the Commonwealth of the Northern Mariana Islands (“CNMI”) 8 against Defendants Jin An Hun, Eun Taek Jeong, Joann P. Hensley, Oscar M. Babauta, Ramon S. 14 Salas, and Does 1-10 for allegedly defrauding them and taking their money by pretending to help 15 them with a hotel/casino investment on Saipan. Defendant Babauta has previously been dismissed 16 from the action. (See Minutes for Aug. 24, 2017, ECF No. 46; Order, Jan. 2, 2018, ECF No. 64.) 17 Is Before the Court is Defendant Salas’s motion for summary judgment. (ECF Nos. 54, 55.) 19 The motion has been fully briefed and the Court has reviewed all of the submissions.! 20 || Argument was heard on December 20, 2017, and the Court took the motion under advisement. 21 Defendant’s Motion for Summary Judgment and Memorandum in Support, ECF Nos. 54, 55; Salas Declaration, ECF 22 || No. 56; Plaintiffs’ Opposition, ECF No. 60; Plaintiffs’ Exhibits A-F, ECF No. 60-1 to 60-7; Defendant’s Reply, ECF No. 62; Salas’s Supplemental Declaration, ECF No. 62-1; Nicholas Declaration and Exhibits A-J, ECF No. 62-2; Deleon 23 || Guerrero Declaration, ECF No. 62-3. 24

For the reasons articulated below, Defendant’s motion for summary judgment is GRANTED. 1 II. FACTUAL BACKGROUND 2 In December 2006, Kim, a citizen of Korea, came to Saipan as a tourist and based on his 3 4 observations, decided to invest in a new tourist destination with thirty to fifty million dollars. (Compl. 5 ¶¶ 5, 17–19.) He met Defendant An, also a citizen of Korea, who offered to assist him with the 6 investment. (Id. ¶¶ 6, 20–21.) An introduced Kim to Defendant Taek, also a citizen of Korea and a 7 longtime resident of Saipan, who also promised to assist with the investment. (Id. ¶¶ 7, 24, 26.) 8 Because Kim did not speak or read English, An and Taek offered to handle the financing and 9 permitting process as they spoke Korean and English and knew “all of the key players.” (Id. ¶ 27– 10 28.) Kim was instructed by An and Taek to wire funds to them on numerous occasions so that they 11 could use the funds for the project. (Id. ¶¶ 29, 31.) During this time, An and Taek also introduced 12 Kim to Salas and other government officials. (Id. ¶ 30.) As set forth in greater detail in the complaint, 13 14 these individuals, including Hensley, allegedly engaged in a scheme to steal Kim’s money by 15 pretending to help him with his investment. (See generally id.) 16 Relevant to this order, however, are the allegations involving Salas, an employee of the 17 Department of Public Lands until late 2007 and then again beginning in October 2011. (See Salas 18 Decl. ¶¶ 9, 12, ECF No. 56.) The following are allegations relevant to the motion, taken from the 19 complaint, Salas’s Declaration attached to the motion, and Kim’s Declaration attached to Plaintiffs’ 20 Opposition, and read in the light most favorable to the non-moving party: 21 • Taek spoke to Salas about leasing a parcel of public land in San Antonio Village for the 22 investment. (Compl. ¶ 37; Salas Decl. ¶ 4; Kim Decl. ¶ 22.) 23 • Salas arranged a meeting for Kim with the CNMI governor to discuss Kim’s investment 1 plans. (Salas Decl. ¶ 7; Kim Decl. ¶ 24.) 2 3 • On behalf of the CNMI, Salas traveled to Korea with Taek and several others to look into 4 Kim’s financing, and concluded that Kim had sufficient assets to pursue his investment 5 plans. (Compl. ¶ 52; Salas Decl. ¶ 8; Kim Decl. ¶ 25.) 6 • After Kim’s lease was approved, Kim asked Salas how long KSA had to prepare the 7 financing for the project and construct the resort. (Compl. ¶ 46; Kim Decl. ¶ 27.) Salas 8 told him that he had two years from the date of the execution of the lease. (Id. ¶ 47; Id.) 9 • When Salas’s employment contract with DPL was not renewed, his employment with DPL 10 ended in November 2007. (Salas Decl. ¶ 9.) 11 • Kim’s lease was cancelled by DPL on May 29, 2008 (Deleon Guerrero Decl., Ex. B, ECF 12 13 No. 62-3), and Kim was informed by An about the cancellation the following month. 14 (Compl. ¶ 64; Kim Decl. ¶ 34.) 15 • Kim met with Salas in September 2008 to hire him as a consultant. Salas was to assist Kim 16 with getting the lease restored and would be paid $60,000. (Compl. ¶¶ 66–67; Salas Decl. 17 ¶¶ 10–11; Kim Decl. ¶¶ 31, 35; Consultant Contract, Ex. A to Salas Decl.) To pay Salas, 18 Kim wire transferred funds to An. (Compl. ¶ 68; Kim Decl. ¶ 35.) 19 • After Kim hired Salas, Salas hid the fact that DPL requested that Kim enter into final 20 negotiations for moving forward with the investment. (Id. ¶ 82(f).) 21 22 • On October 16, 2009, An told Kim that he needed to pay money to the governor to restore 23 the lease. (Compl. ¶ 70.) Salas was supposed to deliver the money, but allegedly did not 1 do so. (Id. ¶¶ 70–71.) The complaint states that the amount demanded was $140,000, and 2 that Kim wire transferred the funds to An at San Jose Market, who was supposed to give 3 4 them to Salas. (Id.) Salas allegedly was supposed to deliver the funds to the governor but 5 did not do so. (Id.) However, Kim states in his Declaration that the amount demanded was 6 $100,000. (Kim Decl. ¶ 37.) Kim claims to have wired $50,000 to AJ Poker where Salas 7 was supposed to pick it up. (Id.) 8 • “On information and belief,” Babauta and Salas demanded that Kim change the name of 9 KSA prior to renewing the lease. (Id. ¶ 77.) 10 • In 2010, a competitor obtained the blueprints for Kim’s project from, “on information and 11 belief,” Salas, Babauta, or both. (Id. ¶ 82(g).) 12 13 • After Kim’s project fell through and his E2C visa was denied, Salas again allegedly 14 approached Kim in late 2013 to convince him to continue trying to obtain a land lease. (Id. 15 ¶ 94; Kim Decl. ¶ 47.) 16 After these events transpired, Plaintiffs initiated this lawsuit by filing a verified complaint 17 signed by Eddy Hocog, the vice-president of KSA Corp. (ECF No. 1.) In the complaint, Plaintiffs 18 bring four claims: civil RICO in violation of 18 U.S.C. § 1962(c); conspiracy to violate section 19 1962(c) under 18 U.S.C. § 1962(d); fraud; and aiding and abetting fraud. (See generally id.) The 20 parties have completed discovery, which closed on November 2, 2017. (See ECF No. 51.) 21 As part of the civil RICO claims, Plaintiffs allege that Salas and the other defendants were part 22 of an association-in-fact enterprise with a scheme to obtain Plaintiffs’ confidential information and 23 money. (Compl. ¶ 108.) The enterprise also made bribe payments “to and through Defendant Salas” 1 as part of the scheme. (Id. ¶ 114(d).) Further, Salas “extorted money” from Plaintiffs to obtain 2 approval of the project and lease agreement. (Id. ¶¶ 114(f), 134.) In particular, Salas demanded 3 4 payments on the four following occasions: August 1, 2007; September 2008; October 16, 2009; and 5 July 2013. (Id. ¶ 135.) 6 III. LEGAL STANDARD 7 On a motion for summary judgment brought by a defendant against a plaintiff’s claims, there 8 is a “shifting burden of proof.” In re Oracle Corp. Sec. Litig., 627 F.3d 376, 387 (9th Cir. 2010).

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Bluebook (online)
KSA Corporation v. Hun, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ksa-corporation-v-hun-nmid-2018.