Samoan couple charged in fraud scheme accused of stealing millions

Pago Pago, AMERICAN SAMOA — A Samoan couple residing in Utah has been charged with separate but related schemes to defraud two sets of victims, including a 26-year old “vulnerable adult” who sustained a permanent traumatic brain injury when he was 20-months old, following a car accident that killed his mother, according to a 14-page indictment handed down Dec. 15, 2021 by a grand jury at the federal court in Salt Lake City.

 The indictment — unsealed two weeks later along with additional court documents made public late last week — outlined the charges and details against Misiona Patane, 57 — a.k.a, Papalii Patane, a.k.a, Junior Patane — and his wife, Lavinia Patane, 54 — a.k.a Lavinia Tuiatua — accused of defrauding one set of victims out of $1.25 million dollars, along with a related scheme to defraud a “vulnerable adult” out of $2.4 million.

 According to the indictment, Misiona and Lavinia Patane are charged with two counts of bank fraud and three counts of money laundering, while Misiona Patane is separately charged with four counts of wire fraud, six counts of aggravated identity theft, and one count of kidnapping.

 The kidnapping charge is based upon Misiona Patane’s alleged role in keeping a “vulnerable adult” — identified in court documents by initials “J.F” — in Samoa for more than a year under false pretenses so Patane could fraudulently obtain more funds from a trust meant for the benefit and care of the adult, according to federal prosecutors.

 The indictment alleges that the defendants used the money obtained from the schemes for their own personal benefit, including payments to credits cards belonging to the defendants, funding significant travel expenses, as well as numerous large cash withdrawals in Las Vegas.

 The indictment breaks down the two sets of victims and identifies the alleged crimes as “P.S. Scheme, and the J.P. Scheme”.

 P.S. SCHEME

 The indictment identifies victim, “P.S.” as a retired athlete who played a professional sport in the U.S from 2007 through 2016. And in 2011, P.S. created the “P.S. Foundation" to provide services to individuals in and/ or from Samoa and “P.S” served as president of the foundation, which was funded exclusively by P.S. with money P.S. was paid during his professional career.

 Additionally, P.S. contributed millions of dollars to the foundation. And when P.S. retired from his professional athletic career in 2016, P.S no longer contributed funds to the foundation and the charitable work of the foundation stopped.

 Allegations in the indictment state that in 2011, Misiona Patane became the director of the foundation and was responsible for filing the foundation's documents, overseeing the foundation's events, and managing the foundation's expenses.

 It’s also alleged that, later in 2011, Lavinia Patane, became an officer of the foundation. At least as early as 2012 and continuing into 2019, Lavinia Patane wrote numerous checks, made deposits, and made cash withdrawals from bank accounts in the name the Foundation.

 The indictment further alleges that “P.S” was unaware that Lavinia Patane had any involvement in the Foundation, did not authorize her to have a role in the Foundation, and did not give her permission to manage the foundation's finances or receive compensation from the Foundation.

 Between 2015 and 2017, the Patanes diverted $1.25 million in tax refunds belonging to “P.S”. and his wife — identified with initials “L.S” — and used the money for their own personal use. 

 J.F. SCHEME

 The indictment details allegations against the defendants for their role in stealing about $2.4 million from a court-monitored trust account which existed for the benefit of “J.F.”, whose father also sustained a permanent traumatic brain injury due to the car accident and was disabled until he passed away in 2008.

 It is alleged that under the terms of the court-monitored conservatorship, two family members were appointed as co-guardians to manage the financial and daily affairs of “J.F.” and that the co-guardians could authorize expenditures of funds from the J.F. Trust.

 It is alleged that from 2016 to 2018, the Patanes stole $2.4 million from the J.F. Trust, under the guise of helping to provide services and pay for expenses related to J.F.’s care; the Patanes used these stolen funds for their own personal expenses.

 It is further alleged that Misiona Patane devised a plan to have J.F. participate in a residential program in Samoa, and that Misiona Patane, acting as himself and pretending to be third parties, sent numerous emails and fraudulent documents to J.F.’s guardians and financial advisor to fraudulently obtain money from J.F.’s trust.

 In addition, it is alleged that Misiona Patane, for the purpose of fraudulently obtaining more money from the trust, falsely stated that J.F. was required to stay in Samoa pursuant to a court order and that J.F. would be subject to arrest or imprisonment should J.F. attempt to leave Samoa and travel to the U.S. 

 According to the indictment, J.F. left the U.S for Samoa on July 2017 to participate in the residential program and remained in Samoa until around February 2019.

OTHER ISSUES

 Federal prosecutors said in a national news release last Thursday that Misiona Patane is currently being held in custody pending trial after a finding by a federal magistrate that the defendant is a danger to the community and a risk of flight.  

 Some of the allegations in the indictment occurred while Misiona Patane was serving a federal probationary sentence for a previous federal conviction for fraud, according to the statement.

 It also says that any individual who believes they may be a victim of fraud by the defendants is encouraged to contact the United States Attorney’s Office Victim Coordinator at 801-325-1430.

 Prosecutors noted that statements made in charging documents are only allegations and not findings of guilt. All defendants are presumed innocent unless found guilty of the charges contained in the indictment.

 Samoa News will report later this week on additional updates on this case, based on court filings.