RISDIC Figure To Stay InPrison

Register now

PROVIDENCE, R.I. - (11/03/05) -- One of the key figures in the 1991collapse of the state credit union system will remain in jail forviolating the terms of his probation, which included payingrestitution. Real estate developer David LaRoche was ordered to pay$4.5 million in restitution for his role in the collapse of the1991 Rhode Island Share and Indemnity Corp., the private depositinsurer for the credit unions. The state Supreme Court ruled thisweek that LaRoche violated probation when he failed to pay therestitution, even though prosecutors said he was able to spendlavishly on vacations, investments and his son's college expenses.LaRoche, 60, has seven more years to serve on hissentence.

For reprint and licensing requests for this article, click here.