Bribery In FSM Government By Lyon Assoc. Inc.

edited January 2019 in General
Google threw up this piece, today, in the below link. Apparently, the US Government is going to court on our behalf. Could somebody elaborate on who took the bribe. It seems someone at FSMTC&I and another in Congress have been enjoying gifts like Las Vegas trips, free vehicles, free apartment, free tuition, free money, etc. For democracy to work, citizens gotta know what their officials been up to. Anyway, without further ado, here it is:

...and here's the court documents:

By HNN Staff | January 17, 2019 at 4:57 PM HST - Updated January 18 at 5:33 AM
HONOLULU (HawaiiNewsNow) - A Hawaii businessman has been charged with bribing state employees and officials in the Federated States of Micronesia in order to receive multi-million dollar government contracts.

Frank James Lyon, of LYON Associates Inc. in Honolulu, allegedly bribed the Hawaii government workers with at least $240,000 in order to land a $2.5 million contract, according to a federal court filing.

Court documents say one of the employees — identified as co-conspirator 3 — was with a state agency from 2009 to 2012. The filing says the state worker arranged payments to others, including one on a contract selection panel.

Lyon, president of the civil engineering firm, is also accused of bribing Micronesian officials with at least $200,000 in order to get $7.8 million in contract payments.

He could not immediately be reached.

Federal officials did not say which department the co-conspirator 3 worked for. Hawaii News Now has reached out to the state for more information.

But the filings do say that about $132,000 was paid to a state employee “purportedly for marketing services."

“However, the purpose of the payments was for co-conspirator 3′s participation in influencing the award of a state agency contract in favor of engineering company,” the filing said.

LYON identifies itself as a “family-owned, multi-discipline consultancy," with work that includes infrastructure-improvement projects, roads and highways, utilities, institutional facilities and housing developments.

Its website spotlights a host of large Hawaii projects, along with projects across Asia and the Pacific.

This story will be updated.

Copyright 2019 Hawaii News Now. All rights reserved.


  • This is just too easy to to almost figure it out right away for Micronesian Official #1 and Micronesian Official #2. Just go back to 2014/2015 and find out who was the Chairperson dealing with transportation. We also know that there are three guys in aviation at TC&I.
  • lol@Micro...happy new year bro
  • edited January 2019
    It seems the first documented bribe (the Las Vegas trip for Mic.Official#1 and wifey) went back to 2010. The last bribe (Apartment for Mic.Official#2) was as recent as April of 2016. They have been busy bees for a long time. The important thing is that the US Government is correcting their citizens' problems. What has FSM done to correct the corruption on our end? I look forward to reading some Micronesian names on local headlines or in this forum, in the near future.
  • If I am right on my suspicions, I will bet good money that nothing will happen to Micro #1 and Micro #2. They will say problem of statute of limitations for 2010 acts (not true it runs in 2020) and 2016 acts (will not run until 2026).

    Hi Saka. Great job to you and other smart/caring people out there on lobbying U.S. Congress on changing of driver licenses for people from the FAS states. That should have been the job of Micro #2, ambassadors, consulate officers and the Foreign Affairs from 2010 to today - reminding the U.S. of our Compact and the mutual duties to to each other.
  • Belau and the Marshalls would have the crooks names on their local news headlines. In the past, FSM has deported real journalism- but lets hope we have grown up, like other organisms.

    If Microspring2014 is right, then the FSM hasn't a democracy at all, like the Marshalls or Belau. We have instead an oligarchy, which is far worse than communism and few heads shy of a dictatorship. How do we know the elections are not rigged, if not for accountability and integrity? Lets hope you are wrong, Microspring.
  • I hate corruption. Most of us hate corruption. Any sensible person hates corruption. Make the right person the FSM AG in March and this country will be clean.
  • We also need to elect honest individuals into congress. Rather than the customary election based on candidate's congressional prestige, charisma, familial relations and donations, campaign gratuity, and the pork barrel. Those are not necessarily the characters or conducts deserving such office.
  • Z,

    Wish it was that easy...


    Your time for That AG spot
  • Saka, I wish I was back on Mabuchi Hill in the late 1980s again. Those were the carefree days. Take care pwipwi.

  • We do not know per se but we can make educated guesses. As for Micro #2 we look back in 2010 to 2016 to see who was the chairman or vice-chairman at Congress on Communications and Infrastructure. The answer will be black and white. I have looked it up. As for Micro #1, it is a little trickier but we have 2 or 3 guys in TC&I civil aviation. Again, the numbers are limited. It is not safe to publish now but Bill Jaynes, if he has any gut, will take only 2 hours of real investigative journalism and will easily expose those two. What do you say Bill? Do it and we will support you. Time to wear big-boy pants. This is to all of us not just Kaselehlie Press.
  • Official 1 may have a Ford truck purchased in 2013. Official 2 is “a government official in the FSM Congress who served on a congressional committee with oversight of the Engineering Company’s FSM Contracts.” He allegedly “handles the infrastructure committee,” according to an email in April of 2016. The chairman of the TC&I committee is Gouland. He should have a better guess who is responsible. I should point out that the election is just around the corner and a foreign government has detrimental information on our officials. Such information could be used for blackmail.
  • a Ford Truck or one of those big Toyota trucks? The only Ford trucker I know from Congress is the current ED#1 Congressman. That's him?
  • No, Inemento. Official 1 is “a government official in the FSM Department of Transportation, Communication and Infrastructure who administered FSM’s aviation programs, including the management of its airports.” This is the official who allegedly was getting the Ford Truck. Official 2 is an official in congress.
  • This is FSM law on bribery:

    § 516. Bribery in official and political matters.

    (1) A person commits the crime of bribery if he or she offers, confers, or agrees to confer upon another, or solicits, accepts, or agrees to accept from another:

    (a) any pecuniary benefit as consideration for the recipient's decision, opinion, recommendation, vote, or other exercise of discretion as a public official, or as a voter in any election, referendum, or plebiscite of the Federated States of Micronesia;

    (b) any benefit as consideration for the recipient's decision, vote, recommendation, or other exercise of official discretion as a public official in a judicial or administrative proceeding; or

    (c) any benefit as consideration for a violation of a known legal duty as a public official.

    (2) For the purpose of this section, "public servant"or " public official" includes, in addition to those persons who are defined as such under section 104 of this title, persons who have been elected, appointed, hired or designated to become a public official although not yet occupying that position.

    (3) A person convicted under this section shall be imprisoned for not more than ten years, and shall be disqualified from holding any position in the National Government.

    Now let us find these two Micro officials (I assume it will not be hard at all) and criminally charge them. We need to charge this Lyon and his cohorts for breaking FSM law also. U.S., a country of integrity, has done its part and had charged its own suspect. We need to do our part. Otherwise, we need to disperse our government because we are wasting time. It is not a game anymore. Corruption must stop!
  • These suspects must have read Art of the Deal by Donald “Bone Spurs” Trump. Hahahaha hahahaha hahahahah
  • edited January 2019
    It was under the Obama administration that these bribery in the FSM took place. It is the Trump Administration that's doing something about it. Radical Snapper, you should stop being such a democrat and help us stop corruption. We are Micronesians first and foremost.
  • We have a winner for ztupid commentz of the day. Zero pulled black mamba out of his ass. Whataboutism strikes again!
  • z and red, please take that US crap to another thread.
  • I agree, Microspring. Any names of the culprits on local headlines yet? I hope they are not waiting till after the suspect's re-election day, this March 5th.
  • Who else and what else out there. FSM PIO issued his usual softball PR spin. Lets see who has the balls among FSM Congressmen n members of the DOJ
  • It's been over a week since I started this thread and still no names are posted. So let me summarize the description of "Official 2" since his re-election is drawing near. We know from the court document that Official 2 is:

    A) “a government official in the FSM Congress who served on a congressional committee with oversight of the Engineering Company’s FSM Contracts.”

    B) Official 2 “handles the infrastructure committee,” according to an email, in April of 2016.

    C) The following were the members of the congressional committee on TC&I, in 2016 :

    Chariman: Victor Gouland (Chuuk)

    Vice Chairman: Robson Romolow (Chuuk)

    Other Members:

    Florencio Harper (Chuuk)

    Ferny Perman (Pohnpei)

    Esmond Moses ( Pohnpei)

    Isaac Figir (Yap)

    Alik Alik (Kosrae)

    One of the above committee members is our “Micronesian Official 2.” Unless someone, (preferably one of them or their Speaker), tells us the truth, all seven senators should be suspect, especially their leaders, since they are accountable for their committee members' actions anyway. Our congress must not be bribed by foreign contractors or blackmailed by a foreign government with such detrimental information on one of its members. Our Congress won't function well if it is corrupted. The corruption must be amputated from the body, before the infection spreads.
  • Thank you z. Now that is more like it. AG Office is woefully conflicted and a Special Prosecutor needs to be hired. Hire an FSM Bar member who is not from Chuuk or Pohnpei because most people believe that Officials #1 and #2 are either both from Pohnpei or one of them is from Pohnpei while the other is from Chuuk and the current Administration - well let us just say messed up when it returned a certain convicted person for criminal and fraudulent acts to go back to TC&I. I highly recommend an American bar member living back in the States to be hired Special Prosecutor.

    There is no statute in the FSM on Special Prosecutor (I looked at the 2014 of the FSM Code). But there had been one case where a special prosecutor was appointed. Johnny v. FSM, 8 FSM Intrm. 203, 204 (App. 1997). This was reported in FSM v. Wainit, 12 FSM Intrm. 172, 178 (Chk. 2003) after the court denied a motion to dismiss due to conflicted prosecutors. The court only disqualified the stained two prosecutors but not the entire DOJ. Well today, the entire DOJ is stained and we should have an outside prosecutor go after Micronesian #1 and #2 and others that the FBI did not find. And if we don't we need our own Arab Springs.
  • Microspring, Other neutral prosecutors may be found in our sibling nations of Belau and Marshalls. They might have more experienced ombudsman and white collar crime prosecutors.
  • We must get to the bottom of this to cleans our government from such corruptions. I wish the agency putting up posters warning of corruptions look into this immediately or, maybe they are just bluffing with what they are telling the public.
  • I am glad that this Lyon case has come to light exposing our corrupt government officials. Rarely, do we see this kind of news take headlines. We need a government with full transparency!! Hopefully, the FSM government will take action!!
  • Lyons has been in our parts since the early 80's. If the currently alleged conspirators are dealt with, equal attention must be given to past cases. We must demand for a thorough review of the case and trace from when it all started. With all this commotion about our leaders being corrupt, this new development proves that they couldn't have done the things they did on their own. And outside influence was always part of the process.
  • Dearhunter, we are discussing an actual court case where defendant Frank Lyon has pleaded guilty. What past cases are you talking about?
  • Why cannot these two FSM citizens be tried in Hawaii? They violated US laws and should be tried in US court.
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