CRANSTON - An unapproved stop at a department store's fine-jewelry
counter has put convicted embezzler Joseph Mollicone Jr. back behind
bars.
The former bank president blamed for sparking the state banking crisis
in 1991 was being held at the Adult Correctional Institutions today
while a state board investigates a possible parole violation by
Mollicone.
A woman spotted Mollicone shopping at Macy's at the Warwick Mall,
according to the state Parole Board. She became so irate, board
chairwoman Lisa Holley said, that she called the board to report it.
After serving 10 years in prison for embezzling millions from his former
Heritage Loan & Investment Co. , Mollicone had been released on parole.
Department of Corrections spokeswoman Joy Fox said Mollicone surrendered
to authorities yesterday.
Mollicone will appear before a hearing officer likely next week, who'll
determine whether the charge should be heard by the full board, Holley
said.
In October, Mollicone had been placed back on electronic monitoring
parole for at least three months after being spotted drinking a beer at
an East Greenich restaurant.
Mollicone happened to choose a restaurant also being patronized by
Holley, the parole board chairwoman.
A standard condition of any parole is that parolees must refrain from
consuming alcohol or using drugs. And Holley saw Mollicone drinking a
beer, said Parole Board member Frederic Reamer.
Mollicone was ordered back before the board to explain. The result was
his return to electronic monitoring parole.
Mollicone had also been the vice president of the Rhode Island Share and
Deposit Indemnity Corp., which insured 45 of the state's credit unions.
He embezzled $12 million from his own bank and its members. As
authorities were closing in on him, Mollicone fled to Salt Lake City,
where he assumed a new identity.
The ensuing crisis brought down Heritage and forced the emergency
closure of the 44 other RISDIC-insured financial institutions. About
300,000 Rhode Islanders were unable to access their money for up to 18
months, until the state borrowed more than $300 million to reimburse
them.
Two years after his escape, Mollicone turned himself in.
Mollicone was initially sentenced to 30 years in prison and to pay
restitution. It was the stiffest sentence ever given to a white-collar
criminal in Rhode Island.
As a condition of his release in 2002, he faced 20 more years on parole.
-- With reports from Journal staff writer Tom Mooney, The Associated
Press and Journal archival reports
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