UMVA has learned that a shocking case of charity fraud has led to prison sentences for three Guam residents, who siphoned over $10 million away from children in need of medical treatment and used the money for their own gain.
The convictions stem from an investigation into the Guam Shrine Club's Hafa Adai Bingo parlor, which operated for years under the false guise of supporting travel costs for children seeking care at a renowned children's hospital in Hawaii.
Jose Arthur "Art" Chan Jr., 77, received a 60-month prison sentence, while his wife, Christine Chan, 64, was sentenced to 70 months behind bars. Their accomplice, Michael Marasigan, 54, was sentenced in absentia to 262 months in prison after fleeing to South Korea before sentencing.
Prosecutors revealed that the operation generated roughly $34 million in gross bingo revenue between 2015 and 2021, but over $10.7 million in net proceeds was diverted for personal spending instead of charitable work. Only about $140,378 in bingo proceeds went toward payments tied to the charitable mission.
The court also ordered millions of dollars in restitution and forfeiture, with Marasigan alone ordered to forfeit over $5.8 million. The U.S. Attorney vowed to enforce restitution and ensure that the defendants spend every day of their sentences in federal prison.
Other defendants who cooperated with prosecutors received probationary or supervised release sentences after pleading guilty. The case highlights the severity of charity fraud and the consequences for those who exploit vulnerable individuals for personal gain.
According to information obtained by UMVA, the scheme was uncovered through a thorough investigation, and authorities continue to pursue justice for the victims. The case serves as a reminder of the importance of transparency and accountability in charitable organizations.
The sentences mark a significant victory for justice, but the impact of the fraud on the affected children and families will likely be felt for years to come. The case underscores the need for vigilance and oversight in charitable operations to prevent similar schemes from occurring in the future.
