GVB faces $61.5 million federal lawsuit alleging executive misconduct, institutional failures

BY DANIEL M. PEREZ
Journal Staff

HAGÅTÑA, Guam — A former Guam Visitors Bureau employee filed a $61.5 million federal lawsuit against the tourism agency on June 1, alleging a prolonged pattern of sexual assault, harassment, and severe institutional failures by former leadership.

The civil complaint, filed in the District Court of Guam by Joseph C. Razzano, attorney for the plaintiff, names the bureau as a defendant and details specific allegations against Carl T. C. Gutierrez, former president and general manager of GVB and former governor, and George Chiu, board chairman of GVB.

The plaintiff, identified as "Jane Doe," alleges that Gutierrez subjected her to sexual harassment and physical assault during official travel to Osaka, Japan, and Saipan, Northern Mariana Islands, between October 2022 and August 2024.

   
                                                                  
Chiu, who also serves as executive vice president of Tan Holdings Corp., is accused of facilitating improper hotel arrangements during a June 2024 trip to Saipan and ignoring substantial risks of harm to the employee.

The lawsuit outlines broader institutional breakdowns within the tourism agency, including a complete absence of certified human resources personnel and functional internal reporting channels.

According to court documents, when Doe reported the misconduct to legal counsel in August 2024, she was told the board would conceal the matter. A subsequent third-party investigation deemed the allegations credible and recommended structural reforms; however, the complaint states that the bureau took no disciplinary action against Gutierrez, who resigned and refused to participate in the inquiry. The plaintiff further alleges that the organization delayed sharing the findings for more than three months and denied her access to the final report.

The complaint alleges a systemic culture of misconduct, claiming senior officials routinely used government-funded travel as a pretext to visit sexually themed establishments and assigned young female staff members to official trips without any business necessity.

                                                                      
Razzano is seeking relief under federal civil rights legislation, arguing the bureau violated the Fourteenth Amendment through its official policies, practices, and lack of operational oversight.

In a statement issued June 2, the bureau acknowledged the civil filing, emphasizing that Gutierrez is not a named defendant and no longer serves the organization.

Bureau officials stated they maintain a zero-tolerance policy toward harassment, noting that an independent, off-island investigator was hired to ensure compliance with applicable laws, but declined further comment on active litigation. 

The office of Gov. Lourdes A. Leon Guerrero, issued a statement regarding the civil matter, describing sexual harassment and hostile work environments as serious allegations. The executive office emphasized that the tourism agency is a public corporation overseen by an independent board of directors and is not under the direct control of the governor.

The administration stated that the case does not involve any employees of the executive office, calling the notion that the government of Guam engaged in a conspiracy to conceal the claims "preposterous" and noting that the matter strictly involves the tourism agency and one member of its board. mbj