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UMDA Settles Case Against Deloitte & Touche

December 9, 2008

SAIPAN, M.P., Dec. 9 /PRNewswire/ — The United Micronesia Development
Association, Inc. (“UMDA”) announced today that it has reached a settlement
with Deloitte & Touche in a civil suit in the Superior Court of the
Commonwealth of the Northern Mariana Islands (“CNMI”) relating to harm done to
UMDA by company insiders during a time when Deloitte served as auditor and
accountant. UMDA has received a mid seven-figure settlement from Deloitte and
Deloitte & Touche entities in both Saipan and Guam have been dismissed from
the case.

In April of 2007 UMDA filed a civil suit against Robert Pfaff, John
Larson
, and a number of their associates and corporate entities in Superior
Court of the CNMI to recover tens of millions of dollars in damages (plus
punitive damages) for harm done to the company over a ten year period ending
in 2006. Deloitte & Touche was named in the complaint at that time.

Pfaff and Larson are currently on trial in federal court in New York on
charges of fraud, tax evasion and conspiracy in U.S. v. Stein — a case that
has been characterized as the largest criminal inquiry into abusive tax
shelters in the history of the United States. The trial is expected to
conclude later this month.

Pfaff is also under separate criminal indictment in the same federal court
in a case that is not yet scheduled for trial. This second indictment,
relating to Pfaff’s alleged global criminal activities, corroborates many of
the key allegations made by UMDA against Pfaff and his co-defendants in the
civil suit pending in Superior Court in the CNMI.

UMDA President and CEO Russell Snow, commented: “UMDA is pleased to have
reached such a beneficial settlement with our former auditor and accountant in
this matter, so that we can aggressively pursue our claims against Mr. Pfaff
and Mr. Larson. If the allegations in our civil complaint and the federal
criminal indictment are true, then these men betrayed the trust of the people
of Micronesia by enriching themselves at the expense of UMDA shareholders.
UMDA will continue to cooperate with both the U.S. Attorney in New York and
CNMI governmental authorities to ensure that the truth comes out and that
those responsible for damaging UMDA are held accountable for their actions.”

About UMDA

UMDA was founded in 1966 in Saipan. Over the years, UMDA has been
involved in a wide range of businesses, including airlines, cable systems, and
resort properties. UMDA’s shareholders include the government or governmental
entities of the CNMI, Palau, Federated States of Micronesia, and thousands of
individual Micronesians and their families. In December 2007 UMDA announced
the purchase from JAL Group of the Hotel Nikko Saipan, a 313-room luxury hotel
in Saipan.

SOURCE The United Micronesia Development Association, Inc.


Source: newswire



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