RISDIC Figure Released From Jail

- CRANSTON, R.I. (07/25/02) -- A former bankpresident who precipitated the run on Rhode Island credit unionsand banks in 1990 leading to the failure of Rhode Island Share andDeposit Indemnity Corp., known as RISDIC, was released from prisonWednesday after serving 10 years for embezzlement in the case.Joseph Mollicone, Jr., former president of Heritage Loan andInvestment Co. and vice president of RISDIC, which insured 45 ofthe state's credit unions, was convicted of stealing $12 millionfrom the bank, which drained RISDIC and prompted the temporaryclosure of the other 44 institutions. Mollicone, who fled to SaltLake City and assumed a new identity, turned himself in two yearslater and was convicted in 1993. The collapse of RISDIC and theensuing failure of a 10 credit unions it insured promoted at leasta dozen other states to require federal deposit insurance for theircredit unions.