A former Guam senator, Willy Flores, has been indicted by a federal grand jury for bank fraud, money laundering end conspiracy.
Mr Flores has pleaded not guilty.
The United States Attorney's office alleged that Mr Flores along with businessman Takahisa Goto, and former Governor's chief-of-staff, Gil Shinohara, took out a 300,000-dollar loan with the Bank of Guam and deposited some of the money into personal accounts.
The money was loaned for the refurbishing of Pedro's Plaza, an investment the men made together.
Mr Flores was named last year as an un-indicted co-conspirator in the Shinohara case.
He signed a plea agreement with the US Attorney's Office hoping not to be prosecuted in the Pedro's Plaza matter, but the US Attorney did not sign the agreement.