GUAM BINGO FRAUD COLLAPSE: Federal Court Hands Down Prison Sentences in $34 Million Charity Gambling Scheme

HAGÅTÑA, GUAM — Federal prison sentences have now been handed down in one of Guam’s largest nonprofit-related fraud and illegal gambling cases after multiple defendants were convicted in connection with a long-running conspiracy involving the Guam Shrine Club’s Hafa Adai Bingo operation in Tamuning.

United States Attorney Shawn N. Anderson for the Districts of Guam and the Northern Mariana Islands announced that Jose Arthur D. Chan Jr., Christine C. Chan, and Michael L. Marasigan received major federal sentences tied to conspiracy, illegal gambling, money laundering, and wire fraud offenses connected to the operation.

Federal prosecutors stated the scheme operated between March 2015 and December 31, 2021, generating approximately $34 million in gross bingo proceeds while allegedly diverting millions of dollars away from charitable purposes connected to children requiring medical treatment through the Shriners healthcare system.

According to evidence presented during trial proceedings in the District Court of Guam, Jose Arthur D. Chan Jr., widely known as “Art Chan,” served in leadership positions within the Guam Shrine Club, including Vice-President and President. Prosecutors stated the organization publicly promoted Hafa Adai Bingo as a charitable fundraising operation intended to support travel expenses for sick children and guardians traveling to the Shriner’s Hospital for Children in Hawaii for treatment.

Federal authorities stated the defendants falsely represented that bingo proceeds would be used to support those charitable operations while instead diverting large portions of the revenue stream for personal enrichment and laundering activity.

Court records showed that approximately $10,750,804 in net bingo proceeds were allegedly diverted away from the Aloha Shriners organization, which maintains Shrine jurisdiction over Guam.

Jose Arthur D. Chan Jr., age 77, of Dededo, received a sentence on May 12, 2026, of 60 months in federal prison. The sentence also included joint and several restitution totaling $10,750,804 payable to the Aloha Shriners, a $339,013 money judgment forfeiture, and a mandatory assessment fee of $300.

Christine C. Chan, age 64, also from Dededo, received a sentence of 70 months in federal prison. Federal court records showed she was additionally ordered to pay joint and several restitution totaling $10,750,804 to the Aloha Shriners, an $871,500 money judgment forfeiture, and $2,700 in mandatory assessment fees.

Michael L. Marasigan, age 54, from Dededo, was sentenced in absentia on May 18, 2026, after being identified as a fugitive in the case. Marasigan received a sentence of 262 months in federal prison along with $10,750,804 in joint and several restitution payable to the Aloha Shriners, a $5,871,493 money judgment forfeiture, and $6,500 in mandatory assessment fees.

Federal prosecutors stated the scale of the financial diversion sharply contrasted with the amount allegedly used for actual charitable operations tied to children’s healthcare support.

According to Guam Shrine Club banking records cited during proceedings, only approximately $140,378 in bingo proceeds were reportedly used between 2015 and 2020 for payments to the Aloha Shriners and transportation-related charitable expenses. Prosecutors further stated that in 2021 no bingo proceeds were used for the organization’s stated charitable mission.

The investigation also uncovered participation by multiple cooperating defendants who later entered guilty pleas and testified for the government during trial proceedings.

Juanita Capulong, age 73, from Tamuning, pleaded guilty to conspiracy to operate an illegal gambling business, money laundering conspiracy, and money laundering offenses. On May 13, 2026, she received a concurrent sentence of four years probation. Federal court orders additionally required Capulong to pay restitution totaling $479,075.97 to the Aloha Shriners along with a money judgment forfeiture of $138,854 and a $500 fee.

Minda C. San Nicolas, age 71, from Dededo, pleaded guilty to conspiracy to operate an illegal gambling business and money laundering charges. She received a concurrent sentence of three years probation along with restitution totaling $433,921.58 payable to the Aloha Shriners, a $147,599 money judgment forfeiture, and a $300 fee.

Alfredo Leon Guerrero, age 90, from Tamuning, pleaded guilty to money laundering conspiracy charges and received a sentence of time served consisting of one day in custody followed by one year of supervised release. Leon Guerrero was additionally ordered to pay restitution totaling $1,095,907.95 to the Aloha Shriners along with a $100 fee.

Won Sun P. Min, age 62, from Sinajana, pleaded guilty to money laundering conspiracy charges on February 8, 2023. On May 19, 2026, Min received a sentence of time served consisting of one day in custody followed by three years supervised release. Court records additionally imposed restitution totaling $2,326,180.23 payable to the Aloha Shriners, a $906,400 money judgment forfeiture, and a $100 fee.

United States Attorney Anderson condemned the operation, stating the defendants exploited the public reputation of the Shriners Children’s healthcare system to facilitate the multi-million-dollar fraud scheme. Anderson further stated federal authorities intend to aggressively pursue restitution enforcement and ensure the prison sentences are fully carried out.

IRS Criminal Investigation Seattle Field Office Special Agent in Charge Carrie Nordyke stated financial crimes tied to charitable abuse produce direct harm to real victims and communities, emphasizing that investigators remain committed to targeting fraud schemes involving greed-driven exploitation of public trust and nonprofit systems.

FBI Honolulu Special Agent in Charge David Porter stated the defendants allegedly stole money intended for sick children while damaging public confidence in charitable giving systems. Porter stated the FBI will continue pursuing large-scale fraud operations that exploit nonprofit organizations and charitable institutions for personal financial gain.

The investigation was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. First Assistant U.S. Attorney Marivic David prosecuted the case in the District Court of Guam.

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