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News Now

CU System
Magistrate R.I. embezzler unlikely to make full restitution
PROVIDENCE, R.I. (11/21/07)--The man whose $12 million embezzlement prompted the Rhode Island state banking crisis in 1990 has paid back just over $4,500 of the more than $12 million he owes since his release from prison five years ago. Joseph Mollicone Jr., former president of the defunct Heritage Loan & Investment Co., was paying $217 a month in restitutions. At that rate, it would take 4,606 years to pay back the remainder owed (The Providence Journal via Associated Press Newswires Nov. 17). Superior Court Magistrate Patricia Lynch Harwood recently increased the monthly payment to $292 a month after Mollicone married and his expenses dropped. But Harwood said it is unlikely Mollicone will ever pay back the full amount. When the bank failed, it forced the closure of 44 other financial institutions, including credit unions, insured by the Rhode Island Share and Deposit Indemnity Corp. The state was forced to borrow more than $300 million to pay depositors who couldn't access their money for more than 18 months. Mollicone was convicted of embezzlement in 1993 and sentenced to 30 years in prison, $12 million in restitution and $420,000 in fines. He was released on parole in 2002, and began making restitution payments.


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