Spring Nuptials For The Man Who Broke TheBanks and CUs In Rhode Island

April 04, 2006, 1:00 a.m. EDT 1 Min Read

PROVIDENCE, R.I. - (04/04/06) -- Can a convicted embezzler who causedthe greatest banking crisis since the Great Depression findhappiness after prison? Joseph Mollicone, whose theft of $15million from a local S&L caused the 1990 failure of creditunion-insurer Rhode Island Share and Deposit Indemnity Corp., hopesso. Now 62, Mollicone, out of prison a second time on parole, isengaged to marry 33-year-old Katy Hynes, who was legal assistant toMollicone's lawyers during his 1993 trial and is now a white-collardefense lawyer. Mollicone is paying $50 a month on the $12 millionin restitution he still owes for his RISDIC crimes, but his newwife will not be responsible for any of that debt. Mollicone wasthe president of Heritage Loan and Investment Co. and vicepresident of RISDIC. His disappearance after the discovery of histheft caused a domino-like failure of 45 institutions insured byRISDIC, including 29 credit unions, and caused the governor to callthe first bank holiday freezing depositor assets in all of thestate's financial institution on New Year's Day 1991. After hisembezzlement was discovered Mollicone fled to Salt Lake City andassumed a new identity, but turned himself in two years later.Mollicone has received special permission from the court to leavethe state for his honeymoon.

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

MORE FROM AMERICAN BANKER

Real-time payments

Government pitches disaster relief as a use case for FedNow

Five years after the government struggled to disburse pandemic relief checks, the Fed is using improved processing for emergency funds as a reason for banks to get onboard with FedNow.

By John Adams

29m ago
Fintech

Revolut, SumUp make moves in Mexico

Revolut receives a banking license, while SumUp introduces its payments hardware. That and more in the American Banker global payments and fintech roundup.

By John Adams

1h ago
Litigation

DOJ opposes CFPB union's request for rehearing on firings

The Department of Justice has filed a motion opposing the Consumer Financial Protection Bureau employee union's appeal of an August D.C. Circuit ruling allowing the administration to fire up to 90% of the agency's workforce.

By Kate Berry

2h ago
Consumer banking

Citi has 'moved on' from credit card complaints, exec says

Some customers reportedly complained about getting locked out of their accounts after signing up for the bank's new Strata Elite credit card. "We feel like we have done the right thing for all of our good customers," Pam Habner, Citi's head of U.S. branded cards, said Tuesday.

By Nathan Place

3h ago
De novo institutions

Organizers eye February opening for Atlanta-area de novo

The president of the planned Georgia Skyline Bank says he's cautiously optimistic that his group can raise $35 million of startup capital in time for an opening early next year.

By John Reosti

5h ago
Regulation and compliance

Banks weigh 'contradictory' orders on antifa, debanking

The Trump administration has ordered banking agencies to root out and identify instances of politically motivated debanking while at the same time raising pressure on banks to scrutinize or potentially sever their ties with liberal nonprofit clients. That dynamic creates a compliance puzzle with no obvious answers, experts say.

By Ebrima Santos Sanneh

7h ago