Case of Laie woman
accused in Ponzi
scheme goes to jury

She allegedly lured investors by
promising 8% returns in 13 weeks

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By Leila Fujimori
lfujimori@starbulletin.com

Jurors were to begin deliberations this morning in the trial of a Laie woman who allegedly bilked more than $40 million from about 5,000 people in Hawaii, American Samoa and the mainland in a Ponzi scheme.

In closing arguments in federal court yesterday, Assistant U.S. Attorney Larry Butrick said that four years ago, Montez Salamasina Ottley orchestrated a "Cayman Island Investment Program" that promised an 8 percent profit in 13 weeks in exchange for a minimum of $1,000 in cash.

"There's no Cayman Islands. It's just spinning investor money in, investor money out," Butrick said.

The federal prosecutor showed jurors financial ledgers that showed money being deposited and "interest" paid out, but no evidence of investments.

Investors did not use Social Security numbers, nor real names, and instead used names such as Beetle Bailey and Sad Sack, Butrick said.

Defense attorney Richard Gronna rested his case without calling any witnesses yesterday and said the government did not prove its case.

"My only witness is the Lord," Ottley told Judge Manuel Real.

In closing arguments, he said Ottley did not know the investment scheme was a crime. Ottley "believed in this program. She thought it was for the people here," Gronna said.

He said she was duped by another defendant, Paul Lozzero, who was the real mastermind. Lozzero is one of nine other people who have been convicted or plead guilty in connection with the scheme.

One defendant, Helen A. Schlapak, is a fugitive.

Ottley is accused of mail fraud, wire fraud, money laundering and conspiracy.

John W.F. Wright, who has already been convicted, testified for the prosecution yesterday that Ottley signed most of the checks and controlled the cash.

Money was collected from investors in parking lots and restaurants, received through Pacific Travel Systems, converted to cashier's checks and laundered through Fidelity Escrow, Wright testified.