Mangloña rejects leniency, cites ‘befuddling’ mother-daughter scheme in sentencing Adlawan, Butalid

Chief Judge Ramona V. Mangloña imposed a stiffer sentence on Clarissa Adlawan than what was recommended, saying the case went beyond a simple fraud and into what she described as a “befuddling” and troubling dynamic in which a mother enabled—and even encouraged—her own daughter to participate in a conspiracy that siphoned funds meant for schoolchildren.

Mangloña sentenced Adlawan to 48 months in prison—slightly above the guideline range—while her daughter, Giselle Butalid, received 18 months, below the advisory range, after Mangloña found her to be the more vulnerable participant in the scheme during their sentencing hearing last May 6 at the Guma Hustisia in Susupe as the U.S. District Court for the Northern Mariana Islands remains closed until further notice.

Butalid previously worked under CNMI Public School System’s Office of Curriculum and Instruction, where her duties included maintaining accurate records and data for federal grant projects and reporting this information to the grant director.

As a second major point raised during the hearing, Internal Revenue Service special agent Dawn Wandschneider testified that Adlawan paid kickbacks to two officials connected to the Child Care and Development Fund, with documented amounts including $5,000 and $15,000 initially, followed by additional payments tied to contract renewals and other transactions.

The testimony, backed by bank records and ledgers recovered from Adlawan’s apartment, detailed a pattern of monthly kickbacks and gifts, including luxury items—specifically jewelry and designer bags, including Louis Vuitton pieces typically given at the end of contract periods—in exchange for facilitating contracts.

Both women were also sentenced to three years of supervised release and ordered to pay a $200 special assessment. Mangloña imposed joint and several liability for restitution totaling $548,788 to PSS and CCDF.

Despite the prison terms, the court allowed both defendants to remain free for now, ordering them to self-surrender once the Federal Bureau of Prisons designates a facility.

Mangloña said she would recommend that both be housed together, noting their close personal and medical dependence. Adlawan, who addressed the court in tears, said she is a stage 3 cancer survivor with chronic health issues, while both she and Butalid told the court they rely on each other for their well-being.

During sentencing, Butalid stood close to her mother, at one point wrapping an arm around her as proceedings unfolded. Mangloña also pointedly noted the absence of support from Butalid’s adoptive parents, calling it “sad” and “telling” in evaluating her background.

Mangloña rejected defense requests for home detention, calling such a sentence “laughable” given the amount of money involved and the harm to children who depended on the programs. She emphasized that the funds stolen were intended for education and child development, making the offense particularly egregious.

Especially troubling, the chief judge said was Butalid took funds from the very institution tasked with educating children, noting that while she appeared intelligent, she ultimately lacked integrity.

Mangloña pointed to her susceptibility to her mother’s influence, saying she gave in to whatever was asked of her. She also highlighted that Butalid’s final act before leaving her position at PSS was to process a large check and take even more money, which the court said did not reflect genuine remorse. She stressed that when it comes to children, such conduct is unacceptable and beyond compromise.

The court also granted Assistant U.S. Attorney Eric S. O'Malley’s forfeiture request, which includes properties tied to the proceeds of the scheme. Prosecutors specifically identified a nine-room house Adlawan has built or is building in Leyte, Philippines, as among the assets they want applied toward restitution.

IRS testimony detailed how funds were withdrawn through ATMs and transferred to the Philippines, including Tacloban and Makati, and used in part for construction materials and property development. Investigators said more than $1.2 million flowed through accounts linked to the scheme, with hundreds of thousands of dollars remitted overseas.

Mangloña said restitution need not be calculated “to the exact penny,” rejecting arguments that the government failed to precisely quantify losses tied to kickbacks.

Both defendants previously pleaded guilty to conspiracy and money laundering charges tied to the diversion of federal funds through One Legacy Corp., a private company controlled by Adlawan.

As they exited the courtroom, one of the defendants asked Marianas Press not to record them.

Under the court’s order, the pair must regularly check in with probation while awaiting designation to a federal facility. Mangloña also reminded them of their limited rights to appeal under their plea agreements.