State Still Chasing RISDICScofflaws

Register now

PROVIDENCE, R.I. - (02/10/05) -- Fourteen years after authoritiesshut down the Rhode Island Share and Deposit Indemnity Corp--and 45credit unions and banks covered by the private depositinsurer--officials are still trying to collect on outstanding loansowed by dozens of RISDIC borrowers, some still owing millions ofdollars. The uncollected funds came to light this week as officialsare poring over the records of the Depositors Economic ProtectionCorp. while they try to strike a deal to sell the downtown WestinHotel complex to a developer who still owes millions of dollars tonow-defunct Marquette CU, one of 29 RISDIC credit unions thatfailed. The state legislature, which has jurisdiction over thehotel deal, is debating whether to accept payment of $2.7 millionfrom hotel developer James Procaccianti as settlement of as much as$25 million in defaulted loans to the credit union. Among the otherRISDC scofflaws still owing millions are: David LaRoche, a formerreal estate developer later jailed for his role in the RISDICdebacle; Joseph Mollicone, convicted bank embezzler who helpedprecipitate the RISDIC crisis who was sent back to prison lastmonth for violating parole; Michael Lolicata, a local investor;Antonio Giordano, a nursing home developer; and Stephen Block, aformer employee and straw-man borrower for developer NicholasCambio.

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