Three Guam residents tied to a charitable bingo operation were sentenced in federal court after prosecutors said they siphoned more than $10 million away from children needing medical treatment and used the money for themselves.
The convictions stem from the Guam Shrine Club’s Hafa Adai Bingo parlor in Tamuning, which authorities said operated for years while falsely presenting itself as a fundraiser supporting travel for children seeking care at Shriners Hospital for Children in Hawaii.
🚨NEWS ALERT: Guam Bingo Operators Receive Federal Prison Sentences for $34 Million Fraud Scheme
Hagåtña, Guam – Jose Arthur D. Chan, (Art Chan) Jr., his spouse, Christine C. Chan, and Michael L. Marasigan were sentenced for their roles in an illegal gambling operation involving… pic.twitter.com/qWOA0YNIPJ
— FBI Honolulu (@FBIHonolulu) May 20, 2026
Jose Arthur “Art” Chan Jr., 77, received a 60-month prison sentence on May 12. His wife, Christine Chan, 64, was sentenced the same day to 70 months behind bars. Michael Marasigan, 54, was sentenced in absentia on May 18 to 262 months in prison after authorities said he fled before sentencing.
Federal prosecutors said Marasigan traveled to South Korea while awaiting sentencing, prompting the FBI to continue searching for him as a fugitive. Court records showed he failed to appear for scheduled proceedings before the judge imposed the sentence without him present.
A federal jury convicted all three defendants in May 2025 on charges including conspiracy to operate an illegal gambling business, conspiracy to commit wire fraud and money laundering conspiracy. Christine Chan and Marasigan were also found guilty on additional money laundering counts.
In May of 2025, Michael Lizaso Marasigan was found guilty on charges of Conspiracy to Operate Illegal Gambling Business, Money Laundering Conspiracy, Money Laundering, and Conspiracy to Commit Wire Fraud. He is now #wanted by the #FBI for violations of his pretrial release:… pic.twitter.com/H9Jarsivk0
— FBI Most Wanted (@FBIMostWanted) January 26, 2026
Officials detail years-long scheme bingo fraud in Guam
According to prosecutors, the operation ran from March 2015 through the end of 2021 and generated roughly $34 million in gross bingo revenue. Investigators said more than $10.7 million in net proceeds was diverted for personal spending instead of charitable work connected to the Shriners organization.
Evidence presented during trial showed the bingo hall promoted itself as helping pay airfare and travel costs for children and guardians traveling from Guam to Hawaii for medical treatment. Prosecutors argued that players and donors believed their spending supported sick children when most of the money never reached that purpose.
Federal records showed only about $140,378 in bingo proceeds from 2015 through 2020 went toward payments tied to the charitable mission. Prosecutors said none of the proceeds collected in 2021 supported the organization’s stated cause.
The court also ordered millions of dollars in restitution and forfeiture. Marasigan alone was ordered to forfeit more than $5.8 million.
“These defendants traded on the reputation of the Shriners Children’s healthcare system to perpetrate their multi-million-dollar fraud,” U.S. Attorney Shawn N. Anderson said in a statement. “It was an unconscionable means to personal gain. We will make every effort to enforce restitution and ensure that Marasigan and the Chans spend every day of their sentences in federal prison.”
Other defendants who cooperated with prosecutors, including Juanita Capulong, Minda San Nicolas, Alfredo Leon Guerrero and Won Sun Min, received probationary or supervised release sentences after pleading guilty.
Featured image: Screenshot via KUAM News
