Forfeiture hearing over Adlawan jewelry claims postponed to Sept. 14

A hearing on competing claims involving jewelry seized in the federal fraud case against Clarissa Adlawan has been postponed, with the U.S. District Court resetting the matter from Aug. 6 to Sept. 14 at 9am before Chief Judge Ramona V. Manglona. The hearing was continued to allow the parties additional time to complete a visual inspection of the seized items, a process that could resolve the ownership dispute without the need for a forfeiture hearing.

According to a stipulated motion filed by the parties, petitioners Wilfredo Ching and Violeta M. Centeno requested an ocular identification of the confiscated jewelry to determine whether the seized items match those listed in their inventory, including comparisons of carat, color, weight, photographs, and the type of precious metals and stones.

Ching and Centeno own Perfectly Set, a jewelry store in Garapan.

Federal prosecutors said the Internal Revenue Service-Criminal Investigation is in the process of returning the seized jewelry from the U.S. mainland to its Saipan office so the claimants can conduct the requested inspection.

If the petitioners determine that some of the seized jewelry is property in which they hold a superior legal interest, the parties intend to notify the court, which could render the forfeiture hearing unnecessary. The government would then move for a final order of forfeiture covering the remaining property.

The ownership dispute involves 160 pieces of jewelry and 66 designer handbags, including Louis Vuitton and Prada items, that were seized during the federal investigation into Adlawan and her daughter, Giselle Butalid. The petitioners contend that some of the jewelry was provided to Adlawan on consignment for resale rather than purchased with proceeds of the fraud, and therefore should not be subject to forfeiture. The court has not yet ruled on the merits of those claims.

Adlawan and Butalid were sentenced in May after their convictions in a procurement fraud and money laundering case involving the CNMI Public School System. According to court records, the pair orchestrated a scheme that generated fraudulent payments through forged procurement documents, with the proceeds later laundered through financial transactions and used to purchase luxury goods and other assets.