Guam taxpayers to shoulder the burden of $61M lawsuit against visitors bureau, attorney general warns

Former employee says GVB funds spent on sex junkets

By Pacific Island Times News Staff

(Editor's note: This story has been updated to include the attorney general's comment.)

Sen. Therese M. Terlaje has called for a full investigation into the sexual harassment complaint filed against the Guam Visitors Bureau, which is facing a $61.5 million civil suit in federal court.

Carl Gutierrez

"Sexual assault, sexual harassment, or any form of workplace misconduct must never be tolerated with any government of Guam agency, autonomous agency, or public corporation," Terlaje said.

Besides the sexual harassment claims against Carl Gutierrez, former GVB president, the lawsuit also alleged the agency's use of public funds on sex tours during off-island trips.

In response, Attorney General Douglas Moylan said his office has already been looking into the allegations made by a former GVB employee, who sued GVB on June 1, alleging a "prolonged pattern of sexual assault and harassment" and use of public funds to visit adult entertainment facilities during off-island trips.

"I will remind the public that the civil ramifications for our taxpayers place our government funds in jeopardy of at least a $61.5 million debt obligation," Moylan said in a press statement.

The complaint was directed against Carl Gutierrez, former GVB president, who allegedly "repeatedly subjected plaintiff to escalating acts of unwanted sexual harassment, coercion and sexual assault during official travel and in GVB offices, under color of his authority" between October 2022 and August 2024.

Also named as a defendant was George Chiu, the board chairman, who allegedly refused to take action despite receiving the complaint and the subsequent investigation.

"Plaintiff also experienced shame from being related by blood to Mr. Gutierrez and subjected to unwanted sexual harassment, coercion, and sexual assault," the complaint reads.

"Plaintiff also suffered from extreme fear of the retaliation that would come from Mr. Gutierrez’s position as the president of GVB and power and influence as a former governor of Guam."

Investigation confirmed that the plaintiff's accounts were credible, but the board failed to impose any disciplinary action against Gutierrez, who had since resigned from GVB.

"Mr. Gutierrez’s boorish sexual behavior was part of a broader culture of sexual misbehavior occurring during GVB activities and tolerated by GVB’s board, including routine use of official, government-funded travel as a pretext to visit brothels and other sexually themed establishments, fostering a culture of sexual permissiveness and pressuring accompanying male employees to participate or acquiesce," the lawsuit says.

The plaintiff alleged that "there existed a broader culture of sexualized misconduct, abuse of authority, intimidation, retaliation, and tolerance of inappropriate behavior at GVB," but fear and lack of the board's support discouraged reporting.

Terlaje said "any effort to conceal, minimize, or disregard allegations of such conduct" is "equally unacceptable."

Those "who knew and should have known the allegations and did not prevent further threat or harm, or used public funds for illicit activities" must also be investigated, she added.

Moylan noted that under the constitution, both the crime victims and the accused have rights, in the case of the latter, the right to the presumption of innocence. 

"I have no intention of rushing to judgment in how this people’s law office proceeds, given the gravity of what is at stake for the people of Guam, the accuser and the accused," he added.

Moylan also noted that the legal standards for civil and criminal allegations differ. 

"We must believe in and follow the due process rights and protections mandated in the Constitution and Guam local laws for the accused and accuser," the attorney general said.

"In addition, the respective civil and criminal rights of the several persons involved in the numerous and involved fact patterns must be respected, including the accuser and the accused," he added.

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