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Rubin sentenced to 7 years and ordered to pay $39.94 million+

American Samoa is on the list recommended for restitution for just over $3Mil
fili@samoanews.com

Attorney General Talauega Eleasalo Ale appears to be getting what he requested from a federal court in California for Native Hawaiian Holding Corporation (NHHC) official, Quin Ngoc Rudin — to “punish him to the fullest extend of the law.”

U.S District Court Judge Jon S. Tigar has sentenced Rudin to serve more than 80 months in federal prison and ordered him to pay nearly $40 million in restitution, which it is unclear he will be able to pay, but several properties and bank accounts linked to the defendant’s scheme have been forfeited by order of the court.

ASG awarded NHHC a multi-million dollar contract funded by the federal National Emergency Grant (NEG) program following the 2009 earthquake and tsunami to provide among other things job training and a call center. It was Rudin who signed the contract on behalf of NHHC.

However, federal prosecutors say, “In truth, NHHC had virtually no ability to implement the job training services for which it was hired,” and that NHHC received payments from ASG totaling $3.13 million.

Rudin’s case before Tigar, stems from a federal indictment in 2013 in which the federal government accused him of defrauding Cisco Systems Inc. and its subsidiary Cisco Systems Capital Corporation and Altura Pharmaceuticals, Inc. — through his own company called CGC Digital.

Last Friday, Tigar sentenced Rudin to 84 months imprisonment (which is about 7 years) followed by three years of supervised release, according to a two-page summary of the court proceeding.

Tigar also ordered the defendant to pay restitution of just over $39.94 million — which is also the same restitution recommended by prosecutors in its sentencing memo.

The breakdown of the restitution, in the prosecutor’s sentencing memo, shows American Samoa Government with just over $3 million ($3,131,974). The largest single restitution amount of $32.04 million is for Cisco Systems Capital Corp.

In his impact statement, Talauega told the court, “Mr. Rudin’s crimes were not victimless in any sense of the word. His selfishness and greed has a negative, harmful and long lasting impact on the American Samoa Government and the people of American Samoa, especially given the purpose of the monies he stole.” (See Samoa News edition Sept. 23 for details.)

Also during sentencing Tigar adopted a preliminary order of forfeiture, which was issued last month. The forfeiture order covers a property in San Diego, electronic equipment, and several bank accounts, including two with the Bank of Hawaii.

One of the properties that was listed on the preliminary forfeiture order, was a Gulfstream jet, described by prosecutors as a “ridiculous” purchase made by Rudin. The federal government has “learned that each trip that the jet took to American Samoa — and there were several — required the purchase of tens of thousands of dollars of fuel.”

However, prosecutors say the jet has been resold and refurbished and is no longer of any value. Therefore it was not included in the final forfeiture order.

And also during sentencing last Friday, the court recommended to the federal Bureau of Prisons (BOP) that the defendant be “designated to a facility... in Washington or Oregon to facilitate visitation with his significant other and family.”

Additionally, the court recommends to the federal prison that the defendant be enrolled in the Residential Drug Abuse Program (RDAP) — which is a six-month, 500-hour substance abuse rehabilitation program administered by BOP.

According to court documents, the defendant addressed the court during sentencing as well as William Friedman, senior director of litigation from Cisco, but details were not available online. The court has ordered sealed many documents in the Rudin case.