2026-09-28 - Senate (2)

00:00Let's

00:07know. Yeah.

00:28Fore

00:44clients.

01:07Foreign

01:11speech. Foreign speech. Foreign speech.

01:31Foreign

01:34speech. Foreign speech. Foreign speech.

01:54Foreign

01:59speech. Foreign speech. Foreign speech.

02:29for

02:57Amen.

03:00Yeah.

03:03[clears throat]

03:09Yeah.

03:47interest.

03:59So yeah,

04:25[snorts]

04:29Foreign

04:43speech. Foreign speech. Foreign speech.

04:51foreign

04:53speech.

05:18Attorney client privilege. Yeah.

05:21Attorney client privilege.

05:39Yeah.

05:50My client

05:53[clears throat]

05:57information in the public interest.

06:16Yeah.

06:21Yeah.

06:33Foreing

06:44my city.

06:51[snorts]

07:12Fore

07:31speech.

07:36for

08:00sure.

08:04Yeah.

08:0512.

08:29foreign.

08:37Yeah.

08:56Yeah. [clears throat]

09:06>> [snorts]

09:17>> Yeah. Say no more.

09:42Fore! Foreign! Foreign!

09:52for

10:18telephone.

10:25Yeah.

10:32Yes.

10:49Yeah.

10:53Yeah.

11:14man Note

11:20bread.

11:43Yeah.

12:06[snorts] Yeah.

12:11>> [cough]

12:23>> Butler

12:39official.

12:48investment.

12:49Yeah.

12:59Kansas.

13:14Yeah.

13:22Fore

13:38bread, a famous

14:00bread.

14:09Yeah.

14:13Fore

14:25agreement.

14:39McKinley for McKinley for Street.

14:55clients.

15:06Yeah.

15:16May

15:39attorney client privilege.

15:50Yeah.

16:04Brett Butler.

16:16Committee

16:20proposals

16:23my

16:29proposal.

16:45Foreign

16:54speech. Foreign speech.

17:33Yeah,

17:50Yeah.

18:16company

18:19Southern Pacific Insurance Corporation.

18:28Yeah.

18:51certificate

18:54of authority.

18:56Ca

19:09interestification.

19:23foreign.

19:29Okay.

19:43officials.

20:07forchech.

20:28Uh thank you Senator uh Tommyola for the

20:31opportunity um to answer the first

20:35question. Um, I think the the question

20:37is uh related to uh Brett Butler's

20:42testimony before the Senate stating that

20:45he had come to me to discuss the draft

20:50contract and I can share with the the

20:52committee uh the facts surrounding that

20:57discussion. Um, I was first made aware

21:00of the uh transaction around December of

21:042025.

21:07I uh, however, did not get a chance to

21:11review it. This was around the holidays

21:14uh, time until around January, early to

21:19mid January, uh, Mr. Butler came to me

21:23asking whether I'd had a chance to

21:25review the contract that he had sent me.

21:28Um, so it was then that I looked through

21:30my emails and found the the information

21:33and uh we began the process of review as

21:39well as uh

21:43addressing concerns I had. um from the

21:47outset the terms of the of the uh

21:51agreement

21:53were concerning and so because of that I

21:56not only wanted to review the terms of

21:59the contract but I had some concerns as

22:01to the people that we were working with.

22:04Um and when I say the terms there was

22:06the term just in and of itself of

22:09investing 10 million and getting 90

22:12million within 90 days or 100 million

22:15within 90 days was uh uh concerning. So

22:19with that um we did have additional

22:23uh vetting that I would not normally vet

22:26in a regular contract. And so we had a

22:29call with uh people who were proposing

22:34the contract, an initial call, and this

22:36was around mid January.

22:38And that call on the call were two

22:41people. And those two people were um

22:47at least the names that I pul was able

22:50to recall a Peter Strait and a John

22:52Eaggan

22:54as well as a woman named Vandy.

22:58So these three people were on the call.

23:00However, the other two gentlemen did not

23:02show their faces on the video screen.

23:05And so after the call, I uh reviewed um

23:10again the terms of the contract. I had

23:13some concerns with some of the terms,

23:15for example, the way the company was set

23:18up and so on. But primarily my concern

23:22was

23:24after that call that I needed to see

23:27these people's faces on the video

23:29screen. one

23:32and I asked that they uh also provide

23:38other

23:40um deals similar to the one that they

23:44are providing to the government because

23:47according to them on the call there was

23:49a deal that they had done in the

23:50Philippines and China. So I ask that

23:53they provide verification of those other

23:56projects

23:58as well as the um contacts where we can

24:02independently verify those other

24:04projects. So those were some initial

24:08uh what I want to say preliminary

24:13questions that I asked before I could

24:18continue to vet the contract.

24:21Um,

24:23we then had a follow-up call and these

24:27two gentlemen, Mr. Egget and Mr. Peter

24:30Strait uh did not appear on the screen

24:35and in fact called by us

24:38used a cell phone to call and we we

24:40spoke on the cell phone and

24:43um

24:46as part again the concern was we were

24:49not unable to to see their faces and so

24:53we did a verification um by email but at

24:57that point after that call and I think

25:00this is the call that Mr. Butler

25:02references in his testimony. After that

25:05call, I advised to abort further and and

25:10stop further um transaction until we get

25:14verification of those two preliminary

25:16concerns that I had.

25:19So that's my convers that was the end of

25:22it and that was about late January,

25:24early February.

25:28Subsequent to that, I think you had

25:31asked the question whether I had talked

25:33to the governor after that because the

25:37discussion is that the contract was

25:40signed in March 17th or or so. I did not

25:44review the subsequent contract. Um I did

25:48not get an opportunity to review the

25:50subsequent contract. I was not aware

25:52that the money had been sent on March

25:5517th. It wasn't until August uh mid

25:59August that I became aware of that and

26:03uh and so that's

26:06the gist of it.

26:08Okay. And let me ask a question u madam

26:13attorney general

26:15in

26:17agreements involving the American

26:20government.

26:45Approve.

26:58Official

27:09lawyer.

27:34What do you love?

27:51approval as to the form of the contract.

27:56>> I did not approve or review that

27:58contract. Yes.

28:13Yeah.

28:50Brett Butler. Um, however, on March

28:5410th, I did receive an email from the

28:56governor. Um, this was in the evening. I

29:01did not respond to to the email, but by

29:05March 11th,

29:07I was notified by Mr. Butler that the

29:11transaction had been aborted.

29:25[snorts]

29:36So I was not aware that this

29:40u deal had been brought to the ACEA

29:44board. When I was reviewing this in

29:46December and January, I was not informed

29:50that the ACEA board had also had

29:53concerns with this transaction.

29:55I only learned that after the fact. Um,

29:59so my uh and I wasn't also uh working

30:04with AEDA at the time on this. Again, my

30:08involvement started in and around

30:10December of 2025, but really not until

30:14mid January to the end of January.

30:23review.

30:34[snorts]

30:41We're questioning mostly on the 10.1

30:45million because it's a different

30:47transaction.

30:49Have you ever seen

30:51the agreement between American Samuel

30:54government and McKinley or McKinley and

30:57Beachree

30:59relating to the deposit of the $10.1

31:02million for allegedly investment with

31:06those companies?

31:10>> Have I ever seen it?

31:12>> Have you ever seen that contract

31:14>> since Yes, I've seen it. Now I've seen

31:17it. Okay. And uh did you ever approve as

31:23to the form of that contract

31:26uh for the government to move forward to

31:29signing the contract with uh McKinley or

31:32McKinley Beach Street?

31:34>> No.

31:37>> Did you ever

31:40did you Okay.

31:44You've already said that you never had a

31:47conversation with the governor about

31:50this contract except for an email

31:55and which you did not respond to and

32:00um

32:02did you ever see a signed copy of the

32:05agreement from Mr. Butler or from the

32:08governor

32:10with McKinley?

32:12>> That same day, March 10th, I did get an

32:16email with a signed copy of the contract

32:20uh in my email box, but again, I did not

32:24get a chance to review it. I didn't get

32:26a chance to give an opinion as to it be.

32:30And then the very next day, I was

32:33informed that the transaction had been

32:35aborted.

32:39Well, obviously uh it has not because uh

32:44we are now uh have proof that uh $10.1

32:49million had been uh remitted by

32:55uh the

32:57American Samo government to uh McKinney

33:01through an escrow

33:03and the money has been uh transferred

33:08away from uh government accounts.

33:12So uh

33:16were you aware that this transaction was

33:20going to go forward anyway and the money

33:22was going to be paid?

33:25>> No.

33:28Did anyone inform you at all that the

33:30money was transferred and sent to uh an

33:34escrow agent in

33:36uh

33:39Leeward,

33:41Kansas?

33:42>> Not until August 10th when the acting

33:45treasurer informed me that the funds had

33:48been paid and sent to Leeward, Texas or

33:51Kansas.

33:54What was the reason for the acting

33:56treasurer notifying you the money has

33:58been transferred?

34:00>> She came to my uh office concerned about

34:05um I guess pressure from the funds

34:09having been sent out and so she asked

34:11for Lee advice and so that was when I

34:15first became aware that the transaction

34:18had indeed uh transpired.

34:26Did you do anything? Did you contact the

34:30governor about uh your concern with the

34:33remittance of that money to these to

34:36these folks?

34:38>> Yes. On August 11th, I did email Brett

34:42as well as the governor

34:45to uh with advice about and concerns

34:50about the remittance.

34:54>> Did they respond to your email?

34:57>> No.

35:07All right. And uh

35:11to this date, has uh the governor or Mr.

35:15Butler ever

35:17uh brought you up to date as to what

35:19they have been doing uh with McKinley or

35:23McKinley Beach Tree with respect to this

35:26one? $10.1 million.

35:29>> Yes. Uh

35:32thereafter I did have conversations with

35:35the governor um and as well as Mr.

35:39Butler and

35:42uh it's my uh

35:46sense that they do genuinely believe in

35:49the truth of this um transaction

35:54and uh though that's been the general

35:58sense from conversations with them.

36:01>> Okay.

36:04[clears throat]

36:07for

36:37committee.

36:48Yeah.

36:57Fore!

37:06Foreign! Foreign!

37:21for

37:53Um,

38:14yeah.

38:22It was established.

38:40South and Pacific Insurance Corporation

38:59incorporation.

39:01The Incorporation

39:14Oh, Matt Wade, chief financial officer,

39:18treasurer. Leo Corin, Vice President

39:23Ashley Johnson,

39:32the shareholders of company

39:37South and Pacific Insurance Corporation

39:4075%

39:44director Russell Wilson.

39:48Russell Wilson.

39:50>> Russell Wilson.

39:53>> He's a shareholder interest is 75%.

39:59Lima

40:03director Marshall Japan.

40:21Arts of Cororation.

40:38company

40:42service.

40:52Certificate of authority.

41:14to summon

41:19Pacific Insurance Corporation.

41:29Sure.

41:42Policy

41:46coverage.

42:05Butler

42:10insurance policy.

42:15Butler

42:19insurance policy.

42:38policy

42:47policy.

42:53Yeah.

43:03Certificate of authority issue official

43:10insurance. Is it a broker's license or

43:13an insurance company license?

43:19Certificate of authority is

43:22insurance as an insurance company.

43:46officials.

43:57Products or service.

44:06Marine Insurance Service.

44:09Guaranteed finance insurance uh uh

44:12service

44:20providing

44:22service.

44:25Yeah.

44:52Committee for

45:06sure.

45:19for

45:24million.

45:29>> Huh?

45:32>> So what did you do when

45:36did you do any action?

45:44draft contract.

45:47Um,

46:16identification.

46:35So,

46:37reviewing

46:58Hallelujah.

47:24Brett

47:33investment investment.

47:38>> Okay.

47:39removing a $10 million without the

47:42phonus appropriation. Don't you think

47:44that's a violation of law? the

47:52that the phono has the authority to

47:57appropriate funds

47:59and it is a felony to appropriate

48:04um funds without the proper

48:08authorization.

48:09>> So what are you doing now? So why don't

48:11you prosecute them now?

48:14because they're a violation of the law.

48:17>> I I can explain what we have done since

48:20August and um I can share that with the

48:24phono leaders offline. Um however uh you

48:30know things are still ongoing and as you

48:34all know there's not the the attorney

48:37general cannot prosecute certain

48:39officials of the government.

48:42uh it would be a it's something that is

48:44done by a independent prosecutor.

48:47So you know we we can discuss what the

48:51next steps are but again at this point

48:54we are in a very kind of waiting

48:57position because of the uh understanding

49:01that this or the belief uh that this is

49:05a a valid um investment.

49:09And so that's kind of the situation

49:11we're we're in right now.

49:13>> What if we don't get this money back?

49:18[sighs]

49:19>> That's a good question. Um my concern is

49:23if if we don't get the money back, then

49:26there is some criminal concerns there.

49:29You know, there's there's some uh with

49:32the specifically the people who took

49:35this money. Um and so those are some

49:39things that we are uh preparing for and

49:44um we are very concerned about. But even

49:47if if if not then what about a breach of

49:50contract because the time has come and

49:53gone and the the the promise has

49:56potentially you know there's there may

49:58be a potential review for breach of

50:01contract. So those are some things that

50:03again my office is standing by. I have

50:07assigned a particular

50:10uh attorney to handle the situation or

50:14or prepare in the event um because I'm

50:19kind of standing I'm in a little bit of

50:21a difficult situation because you know

50:23of wearing a a bit of multiple hats in

50:26this particular situation. So, but I

50:29have uh you know again I I understand

50:32the concern of of the FONO and the

50:36territory

50:38and and so we are you know doing what we

50:41can at this time to just prepare and and

50:45I pray and hope that the uh that that

50:48isn't the case. Um but again my my

50:52responsibility as you uh rightfully

50:55advise my responsibility is to ensure

50:57that the laws are protected and

51:00specifically that funds don't get stolen

51:04from our our government.

51:16independent prosecutors assign

51:2036 million.

51:21>> Yes.

51:22>> So the independent prosecutor was

51:25assigned through the phono's initiative

51:28and that goes to the high court and the

51:31high court appoints the independent

51:33prosecutor. He then reports back to the

51:36high court. He does not report to the

51:38AG's office. So to answer your question

51:40>> because we didn't receive any report.

51:44>> We'll follow up with him. But we also

51:46have not received a report.

51:49We need that report.

52:03Fred,

52:03>> you bread.

52:05>> Oh, Brett Butler.

52:10Brett Butler.

52:30Brett Butler

52:46investment

52:53investment

52:57alliance insurance company.

53:00Alliance Insurance Company reinsurance

53:04company

53:10and Pacific Insurance

53:22is going to come back and haunt you in a

53:24future.

53:32Alliance Insurance,

53:37their only reinsurance company,

53:45South Pacific Insurance.

54:05procurement,

54:08directors,

54:24Bond insurance

54:34bonding insurance 100%.

54:5620% retention.

55:13Office

55:19Hawaii.

55:52Bonds,

55:54insurance coverages.

56:05local contractors.

56:20Million dollar pot

56:22projects.

56:29qualify

56:30in bonds.

56:52He's asked me to look into how we can

56:55help and assist our local contractors to

56:58obtain these bonds Insurance

57:08works

57:13policies, regulations,

57:25a million dollar project from the

57:27federal. a required leua or this circuit

57:31570 which a circular 570 is a bonding

57:35that none of our local contractors can

57:38obtain it because there's so many hoops

57:41you have to jump through. However,

57:44in changing that circuit 570, we were

57:48able to modify the regulation to add a

57:52shy bond.

58:05collect to obtain a bond insurance

58:11bond for performance bonds for bid

58:14bonds.

58:30abuse

58:32contracts

58:44qualify

58:48and I approve their circuit of their uh

58:51excuse

58:52The short bond performance bond

59:19upon

59:27100% bonded.

59:41Why? Why?

1:00:14of finance by ARPA

1:00:26department

1:00:28directors.

1:00:31CPO.

1:00:49If they are solvent, if they are

1:00:51financially sounded and make sure that

1:00:55that we are covered.

1:00:57So, as a as an insurance commissioner,

1:01:13You know,

1:01:32office manager.

1:01:45Certificate of authority.

1:02:02insurance policy

1:02:04insurance policy

1:02:08Pacific Insurance. It's a different

1:02:11insurance company uh offshores

1:02:19the only precision

1:02:22and pacific insurance

1:02:25policy.

1:02:27They are a guaranter.

1:02:30They did not issue the policy. The

1:02:32policy was issued in the company of the

1:02:35trade and merchant trade service.

1:02:41So last question, Mr. Chairman, why did

1:02:45Lo fire you?

1:02:59for

1:03:23lover

1:03:28claims. Property

1:03:32Insurance

1:03:41of London. Lloyds of London.

1:04:06My department is

1:04:26to

1:04:38Commissioner, thank you chairman.

1:04:49[laughter]

1:04:54Is that an admitted carrier in American?

1:05:20Are they admitted?

1:05:32small Pacific

1:05:35alliance or their

1:05:40policy issue is a nonadmitted carrier

1:05:44because that's illegal

1:05:46and it's a serious criminal penalty do

1:05:49doing insurance business in American

1:05:51sour without a certificate of authority.

1:06:08trades and merchant trade services.

1:06:12They are the insure

1:06:15insured

1:06:22insurance

1:06:24McKinley Investment LLC.

1:06:30McKinley

1:06:32Investment LLC

1:06:34on behalf of lost pay is American Samo

1:06:39government.

1:06:43Well, that's that's fine, but

1:06:49insurance company

1:06:56of authority

1:07:08is an insurance broker or an insurance

1:07:11company.

1:07:13insurance company

1:07:20broker

1:07:26carriers

1:07:31independent certificate of authority.

1:07:34Yeah.

1:07:36risk

1:07:3910.1 million

1:07:47insurance trade and merchant trade

1:07:49service

1:07:52as a guaranteed of this insurance policy

1:07:58and Pacific Insurance Corporation.

1:08:01So who owns the policy?

1:08:05South Pacific or tra trade and merchant

1:08:08trade.

1:08:08>> Uh trades and merchant trade service

1:08:14and Pacific Insurance Corporation they

1:08:17are guaranted of this insurance coverage

1:08:27terms or guarantor

1:08:42page. It summarizes

1:08:58the companies.

1:09:00Who is the insur?

1:09:02The insured

1:09:09application for the insurance

1:09:13on behalf of American Sama government

1:09:17and be beyond that

1:09:20where South and Pacific comes in.

1:09:25They are guaranteed

1:09:27as far as this policy is concerned.

1:09:31>> They're guarantor of of what? What are

1:09:34they guaranteeing?

1:09:49policy.

1:09:57They are guaranted of this insurance

1:10:00policy coverages.

1:10:25Guarantee

1:10:33risk.

1:10:43Sorry they love

1:10:53trades of merchant trade service

1:11:02register.

1:11:06and Pacific Insurance Corporation.

1:11:37I'd like to see language that says they

1:11:39guarantee that a failed company trades

1:11:44and merchant trades that South Pacific

1:11:47is on the hook for the $10.1 million.

1:11:52It doesn't show there in that policy.

1:12:08They're practicing insurance without a

1:12:11certificate of authority.

1:12:29conditions.

1:12:34Not only conditions but provisions

1:12:39exclusions.

1:12:46I think

1:12:51if there is grounds to bring charges

1:12:54against these two companies for

1:12:57conspiring for this company to do

1:13:00insurance business in American Samoa

1:13:03without a COA.

1:13:14Peter

1:13:15shareholder

1:13:17insurance

1:13:34certificate of uh

1:13:36of incorporation

1:13:3975% Russell Wilson

1:13:4325% of Marshall Japan

1:13:47shareholders

1:13:50South and Pacific Insurance

1:13:58Wade.

1:13:59>> Yeah.

1:14:00>> He's only the president of

1:14:03>> of the company.

1:14:09partnership in EJ.

1:14:23It is a company

1:14:30for $10 million.

1:14:34US

1:14:38city.

1:14:39>> Yeah.

1:14:55insurance

1:15:03company

1:15:08insurance company.

1:15:15McKinley

1:15:23Investment

1:15:25LLC

1:15:29application

1:15:34insure

1:15:36trade and merchant trade service.

1:15:49Southern Pacific Insurance

1:16:09The Trade and Emergency Service LLC

1:16:12insurance

1:16:15is an insurance agent or a broker

1:16:21insurance policy.

1:16:46internet

1:16:54insurance.

1:16:57We summoned him for a meeting with us.

1:17:15Are this company solvent? Are they

1:17:19sound? What kind of financing background

1:17:22do they have?

1:17:35Pacific Insurance.

1:17:37[snorts and clears throat]

1:17:55Certificate of story

1:18:00insurance corporation

1:18:10license

1:18:11a certificate of authority to to

1:18:14transact insurance.

1:18:16certificate of authority as a broker.

1:18:21So if

1:18:44She was commissioner.

1:19:03Insurance Commissioner

1:19:10[snorts]

1:19:14approaching

1:19:22insurance

1:19:24policy is a is a very very important

1:19:26issue on any kind of situation that

1:19:28where we in right

1:19:41Okay.

1:19:52Insurance

1:19:58Due check out insurance

1:20:30You want to wait? They didn't finish the

1:20:32the process.

1:20:48deal.

1:20:53All these pieces you guys are trying to

1:20:55put together is just came in yesterday.

1:20:58Okay. But all this time you guys didn't

1:20:59do any diligent check out and all the

1:21:02stuff

1:21:07insurance.

1:21:29insurance commission

1:21:51somebody out there is is doing that. So

1:22:06But this thing has been more than six.

1:22:12Can you tell us how how much assurance

1:22:15that we know that we have to make sure

1:22:18that we can get this money back in case

1:22:20the the deal go through? I mean

1:22:24follow through.

1:22:44Butler

1:23:00investment

1:23:21Copy policy.

1:23:43insurance.

1:24:00Before my office issues and approves a

1:24:03certificate of authority

1:24:10background

1:24:12finance

1:24:15claims

1:24:17or penalties

1:24:22company as a foreign company from

1:24:25offshores but also domestic insurance

1:24:28company. Any type of insurance company

1:24:44of authority

1:24:46Okay.

1:24:51Requirements.

1:24:59Yeah.

1:25:08No insurance.

1:25:19for

1:25:54Yeah,

1:25:58[clears throat]

1:26:13sure.

1:26:22Yeah,

1:26:50coverage

1:26:52insurance policy

1:26:58insurance policy.

1:27:10A valid claim shall only arise where the

1:27:14loss of escrow funds under the escrow

1:27:17agreement dated 2026 March 11th result

1:27:23directly from a verified external fraud

1:27:28event.

1:27:34What kind of coverage do we have? This

1:27:37insurance coverage only covers external

1:27:40fraud event

1:27:45investment

1:27:49based on

1:27:54at this point.

1:27:59Without a doubt, we're hoping

1:28:13The investors

1:28:15insured

1:28:22claim

1:28:28investment LLC

1:28:30on behalf of American government.

1:28:51What a minute.

1:29:19policy

1:29:23natural cost.

1:29:32I have to prove it to you.

1:29:50Yes. The way I read

1:29:53based on the policy wording of the

1:29:56policy

1:30:00fraud, I approving a fraud.

1:30:07But that's that's only external fraud

1:30:11fraud from the company in

1:30:14>> Yes.

1:30:16I have one more question.

1:30:24What did UAE get out of this?

1:30:28I I me

1:30:34UAE. My question, what did the UAE get

1:30:36out of this investment? It's only 10

1:30:39million.

1:30:54Well,

1:31:16lovely.

1:31:31Yeah. Yeah.

1:31:37[snorts]

1:31:39[clears throat]

1:31:44for

1:32:11the Pacific.

1:32:21function.

1:32:39Pacific Insurance Corporation.

1:32:49Insurance policy

1:32:51or the trades and merchant trade service

1:33:09Pacific Uru

1:33:17policy.

1:33:48morning.

1:33:55My mouth

1:34:12Lloyds of London.

1:34:30Yeah.

1:34:36Yeah.

1:34:43Yeah.

1:34:49Motor

1:35:05City.

1:35:13Yeah.

1:35:24Yeah.

1:35:26My offer.

1:35:28Yeah.

1:35:53So back.

1:36:06Yeah.

1:36:34for

1:36:48Yeah.

1:36:58Yeah,

1:37:27Forever

1:37:53speech.

1:38:07Lieutenant Kana. for

1:38:19my

1:38:20lover.

1:38:47If I may love

1:39:05Yeah. Fore!

1:39:27Foreign! Foreign!

1:39:31foreign.

1:39:43Okay.