Micronesia’s Supreme Court: Two Nationals Convicted of Money Laundering and Conflict of Interest in Unlawful Shipping Registry Scam

By Pacnews

FSM Supreme Court’s Ruling on Money Laundering and Conflict of Interest

In a groundbreaking decision, the Supreme Court of the Federated States of Micronesia (FSM) found two of its nationals, Martin Jano and Lukner Weilbacher, guilty of conspiracy to commit money laundering and conflict of interest charges in a case involving an unlawful international shipping registry set up in FSM’s name.

The Convicts

Martin Jano, an FSM citizen and lawyer, and Lukner Weilbacher, the former secretary of Transport, Communications, & Infrastructure under the previous administration of President Peter M. Christian, were the convicts.

The Micronesia International Ship Registry (MISR)

The FSM government stated that Jano and Weilbacher conspired with Suniel Sharma, a businessman who established the Micronesia International Ship Registry (MISR). The open ship registry was illegal in FSM because it allowed vessels to be registered by foreigners, whereas FSM only permits a closed registry.

Sharma’s Illegal Activities

Despite this, Sharma registered over 100 foreign vessels, collected registration fees, and operated the registry in FSM’s name without authorization, which resulted in the loss of potential revenue for the FSM government.

Confirmation of the Unlawful Enterprise and Charges

The Supreme Court memorandum revealed that Weilbacher and Jano conspired with Sharma by collecting fees for foreign vessel registrations in FSM’s open registry. They were found guilty of the following:

1. Jano’s Conspiracy to Commit Money Laundering:

   • Jano allegedly conspired with Sharma to collect the proceeds derived from the unlawful registration of numerous vessels, totaling serious crime proceeds, in violation of FSM money laundering statutes.

2. Weilbacher’s Conflict of Interest Violation:

   • Weilbacher willingly participated in Sharma’s scheme to set up an open international ship registry, knowing that his son, Renwick Weilbacher, stood to gain from it if the registry operated on Pohnpei.

Registration Fees and Theft

The FSM did not receive any of the collected funds as none of the ships could legally fly the FSM flag. According to the Supreme Court memorandum, the Court is not saying that there was no theft or conspiracy to commit theft but that the theft was from the shipowners, who paid registration fees to the Micronesia International Ship Registry and did not receive a valid FSM ship registration.

Jano’s Attempt to Legitimize the Scheme’s Proceeds

The first section of the memorandum of decision explained the conspiracy to commit money laundering charge against Jano, who allegedly tried to present a $100,000 check as the FSM’s ‘share’ of the registry fees. Despite being informed about the illegality of the registry and advised Sharma to discontinue operations, Jano still attempted to provide the check in an effort to legitimize the scheme’s proceeds. The FSM rightfully rejected the check.