SAIPAN, CNMI — In a stark federal courtroom ruling, a Filipina mother and her daughter were sentenced to prison for a brazen procurement fraud and money laundering scheme that stole more than half a million dollars from the CNMI Public School System — money meant to educate the islands’ children.
On May 6, 2026, Chief Judge Ramona V. Manglona sentenced Clarissa Adlawan, 55, to 48 months in federal prison. Her daughter, Giselle Butalid, 34, received 18 months. Both women, originally from the Philippines, were also ordered to serve three years of supervised release and complete 100 hours of community service.
The court held them jointly and severally liable for $548,788 in restitution and ordered the forfeiture of two properties they own in the Philippines.
According to court documents, from October 2021 through August 2022, Adlawan and Butalid used their company, One Legacy LLC, to carry out “ghost” purchases. Butalid, who worked inside the Public School System and had access to procurement processes, forged documents and approved payments for educational materials that were never delivered.
Notable fraudulent transactions included:
- $50,000 and $52,500 for online learning materials that never existed.
- A final $113,020 payment made shortly after PSS confronted Butalid about the scheme.
Shortly after each major payment, the mother and daughter would fly to the Philippines, stay in luxury hotels, withdraw large sums of cash from ATMs, and funnel money into building a nine-room house. Prosecutors noted that Adlawan failed to fully disclose details about the property, costing her credit for acceptance of responsibility.
“This is a profound betrayal,” the court heard. Butalid used her position of trust to deprive CNMI children of vital educational resources while enriching herself and her mother.
U.S. Attorney Shawn N. Anderson strongly condemned the crime:
“The defendants’ conduct went beyond defrauding government agencies. Ultimately, children were deprived of educational resources… Any sense of justice required terms of imprisonment.”
IRS Criminal Investigation Special Agent in Charge Carrie Nordyke added:
“Cases like this one clearly demonstrate the destructiveness of greed… funds that would have otherwise been used for the benefit of our communities’ children instead went to finance the dream house of a fraudster.”
The investigation was a collaborative effort involving IRS-CI, the Department of Interior Office of Inspector General, the FBI, and the CNMI Office of the Public Auditor.
The case sends a clear message: greed-fueled theft from public education programs will be aggressively pursued — even when assets are hidden overseas. Authorities will now work to seize and liquidate the Philippine properties to help repay the stolen funds.
