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6.13.2001 00:05
Ruling on releasing funds
expected later this month
• Until then, Chief U.S. District Judge Ernest C. Torres asks for a payment plan for those owed money by Cianci's campaign fund.
BY W. ZACHARY MALINOWSKI
Journal Staff Writer
PROVIDENCE
-- The campaign organization of Mayor Vincent A. Cianci Jr. amassed its $600,000 war chest through "bribes and extortion," and the money should remain frozen until criminal charges against the mayor are resolved, a federal prosecutor said yesterday.
But Chief U.S. District Judge Ernest C. Torres delayed ruling on the issue until later this month. He told lawyers for the government and the Cianci campaign to submit memoranda to the court stating why the money should be frozen or unfrozen.
Meanwhile, Torres urged the lawyers to establish a payment plan for the vendors and businesses that have provided services for the campaign but remain unpaid.
Torres ordered the campaign assets frozen on April 3, the day after Cianci and five others were indicted on racketeering and corruption charges.
Mark L. Smith, lawyer for the campaign organization, said the claims for payment have totaled $54,215. The government did not object to legitimate vendors being paid.
Yesterday's hearing was scheduled at the request of the Friends of Cianci, the mayor's campaign organization, which wants to gain access to the money.
Smith told the court that the war chest's balance is $599,388. In response to a question from Torres, he said the campaign wants access to the money so those awaiting payment can be paid. He also said the campaign wants to use money for the mayor's reelection campaign.
Cianci, 60, plans to run for another four-year term next year.
"The committee deserves to conduct its business until this case comes to a conclusion," Smith said. He said the money is needed to cover the cost of the mayor's "car washes, gasoline," and other expenses.
Smith also alluded to the indictment, saying the only allegation of illegal money going into the campaign fund came in the form of $250,000 from the Providence Towing Association.
The indictment alleges that Richard E. Autiello, a businessman and member of the towing association, secured $250,000 in campaign contributions from other tow-truck operators to ensure they would continue to tow cars for the Police Department.
Smith did not argue about the $250,000. But, he said, the remaining $349,388 should be freed up for the campaign organization.
Asst. U.S. Attorney Michael P. Iannotti countered that the entire amount should remain frozen.
"The [campaign] organization was utilized to disguise bribes and extortion as campaign money," he said.
Torres pressed Iannotti, asking him to provide specifics -- beyond the $250,000 from the tow-truck operators -- about ill-gotten gains.
Iannotti could not. But he argued that, still, under federal law, all the money in the campaign was subject to forfeiture. Torres ordered both sides to limit their memoranda -- in which they will state their positions -- to 10 pages and submit them to the court by June 26.
In May 2000, The Journal reported that Cianci had spent thousands of dollars in campaign money on personal expenses, including Christmas parties, personal holiday gifts and birthday parties for his grandchildren. A statewide grand jury has been investigating those expenditures for several months.
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