GovGuam wins tax case; gets green light to sell $3.7 million in foreclosed properties


The federal court has ruled in favor of the government of Guam, entering a $3.7 million judgment in favor of GovGuam and authorizing the government to sell properties to pay off $3.7 million in unpaid taxes.

The case went to trial in mid-July on the issue of defendant Danny Leon Guerrero’s failure to pay taxes from 1999 through 2002.

The court judgment now authorizes GovGuam to foreclose on six properties owned by the defendant, with 50 percent of the proceeds to pay the owed taxes.

“This is not just a paper judgment,” said Deputy Attorney General (DAG) Kenneth Orcutt in a statement. “There are actual assets that the Government will use to satisfy the debt owed by the taxpayer to the people of Guam.”

“I congratulate the work of the Attorney General’s Office in pursuing this case to the end. We all must respect our responsibility to pay taxes,” Gov. Lou Leon Guerrero.

She added, “Our Tax Enforcement Team, under the leadership of DRT Director Dafne Shimizu, put in countless hours to ensure that the government was prepared for this case. I’m grateful for their hard work and their continued diligence in pursuing the collection of taxes.”

DRT’s Tax Enforcement Team consists of Deputy Tax Commissioner Paul Pablo, Taxpayer Service Administrator Lawrence Terlaje, Jean Flores, Katrina Charfauros, Judith Rios, Annie Duenas, and Maria Celino.

DAG Orcutt, Assistant Attorney General Happy Rons and Paralegal Brenda Aguon handled the matter for the Office of the Attorney General.