Long Arm Of The State Taps RISDICDebtor
PROVIDENCE, R.I. - (03/21/05) -- The R.I. Depositor Protection Corp.,better known as DEPCO, said last week it has reached anothersettlement with a a well-known developer who owed money to one ofthe credit unions insured by R.I. Share and Deposit Indemnity Corp.when RISDIC went bust 15 years ago. Antonio Giordano, the state'sbiggest nursing home developer, agreed to pay $3 million and forgoalmost $7 million owed him by the state to settle his RISDIC debts.The deal come just two weeks after developer James Procacciantiagreed to pay the state $6.5 million to settle debts he owed toRISDIC-insured Marquette CU in order to get approval from stateauthorities to buy the downtown Westin Hotel complex for a majorrenovation project. The failure of RISDIC in December 1990, forcedthe closure of 45 credit unions and small banks insured by theprivate deposit insurer, causing one of the biggest banking crisisin the U.S. Since the great Depression. But DEPCO says severalwealthy or well-known individuals still owe millions of dollars inRISDIC debts.