RISDIC Figure Returned ToPrison
CRANSTON, R.I. - (12/16/04) -- Joseph Mollicone, who served 10years in jail for embezzling $15 million to trigger the 1991 RISDICcrisis, was returned to prison Wednesday for possibly violating hisparole. Mollicone, who was paroled two years ago, surrendered toauthorities on Tuesday. Mollicone was convicted of stealing $12million from Heritage Loan and Investment Co., which was insured bythe R.I. Share and Indemnity Corp. The embezzlement trigged thefailure of RISDIC and more than two dozen credit unions it insuredand forced the Governor to call a bank holiday. Mollicone fled toSalt Lake City, where he lived under an assumed identity, then heturned himself in two years later to face the embezzlement charges.The ensuing crisis eventually forced private deposit insurers forcredit unions in at least 10 other states to close down.