Riley: Providence Rhode Island Defaulted June 30, 2015…So What

Tuesday, July 14, 2015

 

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Attorney General Peter Kilmartin

The City of Providence Rhode Island defaulted midnight June 30, 2015 on a $62 million dollar debt to the City of Providence Pension plan. That very same day Greece defaulted on $1.7 billion due to the IMF. Both Greece and Providence continue to operate as governments. Fitch and Moody’s rate Greece Debt as “junk”, while Providence Rhode Island debt is rated Baa1 by Moody’s Investor Services and by Fitch as BB.

This is how several newspapers reported last week’s twin defaults as these were the front-page headlines. I thought we could have some fun and try to match the headlines with the newspaper.*

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Here is what the New York Times said about Greece’s default

“Did Greece default on its debt? “
“When borrowers — whether they are countries, companies or individuals — do not pay their debts on time, they are in default. For practical purposes, then, Greece — which on Tuesday failed to make a scheduled debt repayment of about 1.5 billion euros, or $1.7 billion, to the International Monetary Fund — has defaulted. “

So pretty much everyone agrees that Greece missed a payment and is in default, but on exactly the same day so did Providence Rhode Island. Why didn’t the City’s own newspaper and the newspaper of record report their own cities default?  First, it’s probably because the Providence Journal is generally clueless but since I had already informed the paper of this upcoming default and submitted an editorial about the City of Providence impending default, I thought they had this story ready for publication. They missed the story completely and unfortunately the letter I submitted was summarily rejected within seconds or minutes of my submission to the Journal.  The letter can be found on rishrugs my blog.

 So, the answer as to why the Providence Journal completely missed the default story or refused to report on it is wide open for discussion. Maybe, the answer is far more sinister than pure incompetence.  Could the Providence Journal actually be a mechanism for cover up of federal securities laws violations? Does the Journal have Providence officials so called “back”?  Could the Journal have been complicit with what appears to have been 15 or more years of lies and false public statements by city officials dutifully regurgitate to the citizens of Rhode Island?  Much more likely is that the Journal is a tool for insiders and insiders treat them as useful idiots. In either case, the public and Providence Journal readers have been disserved by the States only newspaper  and it is GoLocalProv  that has allowed real investigative Journalism to exist and delve into what I believe is felony criminal behavior by several Providence elected and appointed officials on a very wide scale.

Misleading the public, taxpayers, pension beneficiaries and Municipal Investors about the true financial condition of Providence and the City pension plan is a crime. The regulator is the Securities Exchange Commission and its Municipal division. The law enforcement agencies interested in public corruption such as municipal and accounting fraud would include the RI State Police, Attorney General, and the FBI.

They have all been notified by myself and others. I have included my report in those complaints, as should any of you who want a real investigation. Here is the report.

 Please take the time to read and submit if you are as concerned as I am about phony assets, fraudulent and misleading accounting, inappropriate and illegal “borrowing “ from the pension fund and the default, costing the pension fund $62 million, that occurred last week.

Attorney General Kilmartin

Strangely similar to the Providence Journal, who rejected my editorial, Attorney General Peter Kilmartin also immediately rejected my report as “not being the jurisdiction of his Office”  His office suggested that the State of Rhode Island DBR - Securities Division was the regulator. With my 45 years experience in the securities business and my many dealings with regulators, I guessed this was completely wrong. And indeed it was wrong.  So it turns out Kilmartin was completely wrong. Now what?

I have contacted U.S. Attorney Neronha‘s office but have not heard back. Recently Auditor General Dennis Hoyle and I have traded email letters. I think it’s appropriate for me to reprint his letter and my response given the decision by Dan McGowan to publish the Auditor Generals’ letter to me. These letters and the editorial rejected by the Providence Journal can be found here.

*The answer to the table quiz is to switch the daily news and Providence AP headline. Reuters headline is correct.

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Michael G. Riley is vice chair at Rhode Island Center for Freedom and Prosperity, and is managing member and founder of Coastal Management Group, LLC. Riley has 35 years of experience in the financial industry, having managed divisions of PaineWebber, LETCO, and TD Securities (TD Bank). He has been quoted in Barron’s, Wall Street Transcript, NY Post, and various other print media and also appeared on NBC News, Yahoo TV, and CNBC.  

 

Related Slideshow: Top Providence Pensions

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#49

Name- Daniel Guertin

Annual Earning- $95,050.92

Postition- Police-5

City- Providence   

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 19,1991

Source: This information was secured through a FOIA request from the city of Providence.

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#48

Name- Carmine Vallante

Annual Earning- $95,140.20

Postition- Fire-4

City- Johnston

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 19,1991

Source: This information was secured through a FOIA request from the city of Providence.

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#47

Name- Alfred Millard

Annual Earning- $95,368.32

Postition- Fire-4

City- Warwick

State- RI

Retirement Type- Accidental Disability

Retirement Date- March 24, 1994

Source: This information was secured through a FOIA request from the city of Providence.

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#46

Name- James Rattigan

Annual Earning- $95,983.44

Postition- Fire-4

City- North Providence   

State- RI

Retirement Type- Service

Retirement Date- June 30, 2003

Source: This information was secured through a FOIA request from the city of Providence.

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#45

Name- Frank Deangelis

Annual Earning- $95,986.80

Postition- Fire-4

City- North Providence   

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 19, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#44

Name- Stephen Lowe

Annual Earning- $96,156.36

Postition- Fire-4

City- Bristol   

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 17, 1992

Source: This information was secured through a FOIA request from the city of Providence.

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#43

Name- Mary Gonsalves

Annual Earning- $97,463.04

Postition- Police-5

City- Warwick

State- RI

Retirement Type- Beneficiary

Retirement Date- December 1, 1993

Source: This information was secured through a FOIA request from the city of Providence.

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#42

Name- William O'Neill

Annual Earning- $98,160.96

Postition- Fire-4

City- Cumberland   

State- RI

Retirement Type- Accidental Disability

Retirement Date- August 22, 1990

Source: This information was secured through a FOIA request from the city of Providence.

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#41

Name- Paul Healy

Annual Earning- $98,183.28

Postition- Fire-4

City- Cranston  

State- RI

Retirement Type- Service

Retirement Date- October 20, 1993

Source: This information was secured through a FOIA request from the city of Providence.

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#40

Name- James Molloy

Annual Earning- $98,711.16

Postition- Fire-4

City- Providence   

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 18, 1987

Source: This information was secured through a FOIA request from the city of Providence.

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#39

Name- Livia Miller

Annual Earning- $99,193.80

Postition- Fire-4

City- Warwick 

State- RI

Retirement Type- Beneficiary

Retirement Date- May 1, 1997

Source: This information was secured through a FOIA request from the city of Providence.

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#38

Name- Joseph Battista

Annual Earning- $99,271.08

Postition- Fire-4

City- Johnston

State- RI

Retirement Type- Accidental Disability

Retirement Date- April 29, 2004

Source: This information was secured through a FOIA request from the city of Providence.

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#37

Name- Robert Kerfoot

Annual Earning- $100,140.36

Postition- Fire-4

City- Cranston

State- RI

Retirement Type- Accidental Disability

Retirement Date- March 24, 1994

Source: This information was secured through a FOIA request from the city of Providence.

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#36

Name- Ralph Ricci

Annual Earning- $100,357.44

Postition- Fire-4

City- Providence

State- RI

Retirement Type- Accidental Disability

Retirement Date- April 28, 1994

Source: This information was secured through a FOIA request from the city of Providence.

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#35

Name- Henry Latek

Annual Earning- $100,502.52

Postition- Fire-4

City- Providence

State- RI

Retirement Type- Service

Retirement Date- June 30, 1995

Source: This information was secured through a FOIA request from the city of Providence.

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#34

Name- Joseph Bradley

Annual Earning- $100,898.52

Postition- Fire-4

City- Whitefield

State- NH

Retirement Type- Accidental Disability

Retirement Date- November 20, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#33

Name- Ronald Johnson

Annual Earning- $102,098.64

Postition- Fire-4

City- North Scituate

State- RI

Retirement Type- Accidental Disability

Retirement Date- May 1, 2003

Source: This information was secured through a FOIA request from the city of Providence.

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#32

Name- Gloria Pisaturo

Annual Earning- $103,385.76

Postition- Police-5

City- Warwick

State- RI

Retirement Type- Beneficiary

Retirement Date- December 1, 2002

Source: This information was secured through a FOIA request from the city of Providence.

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#31

Name- Edmond Malloy

Annual Earning- $103,575.72

Postition- Police-5

City- Chepachet

State- RI

Retirement Type- Accidental Disability

Retirement Date- September 5, 1990

Source: This information was secured through a FOIA request from the city of Providence.

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#30

Name- John Reposa

Annual Earning- $104,665.44

Postition- Fire-4

City- Jamestown

State- RI

Retirement Type- Accidental Disability

Retirement Date- June 21, 1995

Source: This information was secured through a FOIA request from the city of Providence.

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#29

Name- Pasquale Rocchio

Annual Earning- $105,238.32

Postition- Police-5

City- North Providence

State- RI

Retirement Type- Service

Retirement Date- August 22, 1989

Source: This information was secured through a FOIA request from the city of Providence.

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#28

Name- David Deignan

Annual Earning- $105,609.36

Postition- Police-5

City- Providence

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 19, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#27

Name- Lee Podedworny

Annual Earning- $106,838.16

Postition- Fire-4

City- South Kingstown

State- RI

Retirement Type- Accidental Disability

Retirement Date- July 23, 1992

Source: This information was secured through a FOIA request from the city of Providence.

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#26

Name- Nancy Donahue

Annual Earning- $107,757.24

Postition- Fire-4

City- Warwick

State- RI

Retirement Type- Beneficiary

Retirement Date- July 1, 2005

Source: This information was secured through a FOIA request from the city of Providence.

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#25

Name- Domenic Pono

Annual Earning- $107,850.72

Postition- Fire-4

City- Cranston

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 19, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#24

Name- John Murphy

Annual Earning- $107,892.84

Postition- Fire-4

City- Providence

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 19, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#23

Name- Robert Carlson

Annual Earning- $108,555.36

Postition- Fire-4

City- Greenville

State- RI

Retirement Type- Accidental Disability

Retirement Date- April 24, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#22

Name- Robert Emmett

Annual Earning- $109,256.16

Postition- Police-5

City- Cranston

State- RI

Retirement Type- Service

Retirement Date- November 13, 1990

Source: This information was secured through a FOIA request from the city of Providence.

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#21

Name- Thomas Doyle

Annual Earning- $109,329.24

Postition- Fire-4

City- West Warwick

State- RI

Retirement Type- Accidental Disability

Retirement Date- August 26, 1988

Source: This information was secured through a FOIA request from the city of Providence.

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#20

Name- Joseph Errico

Annual Earning- $109,611.60

Postition- Fire-4

City- Warwick

State- RI

Retirement Type- Service

Retirement Date- June 30, 1995

Source: This information was secured through a FOIA request from the city of Providence.

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#19

Name- Edward MacDonald

Annual Earning- $110,225.64

Postition- Fire-4

City- Johnston

State- RI

Retirement Type- Accidental Disability

Retirement Date- May 26, 1994

Source: This information was secured through a FOIA request from the city of Providence.

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#18

Name- Alfred Lamothe

Annual Earning- $110,505.96

Postition- Fire-4

City- Warwick

State- RI

Retirement Type- Accidental Disability

Retirement Date- September 6, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#17

Name- Ernest Silva

Annual Earning- $112,796.28

Postition- Fire-4

City- Ft. Myers

State- FL

Retirement Type- Accidental Disability

Retirement Date- April 24, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#16

Name- Edward Dolan

Annual Earning- $113,126.04

Postition- Fire-4

City- North Kingstown

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 19, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#15

Name- Paul Marianetti

Annual Earning- $113,331.60

Postition- Fire-4

City- Ormond Beach

State- FL

Retirement Type- Accidental Disability

Retirement Date- November 17, 1994

Source: This information was secured through a FOIA request from the city of Providence.

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#14

Name- Rosemary Clark

Annual Earning- $114,725.64

Postition- Police-5

City- Chepachet

State- RI

Retirement Type- Beneficiary

Retirement Date- August 1, 2004

Source: This information was secured through a FOIA request from the city of Providence.

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#13

Name- John Gannon

Annual Earning- $117,318.60

Postition-Police-5

City- Coventry

State- RI

Retirement Type- Accidental Disability

Retirement Date- January 24, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#12

Name- Marcia Moise

Annual Earning- $119,791.20

Postition- Fire-4

City- Jupiter

State- FL

Retirement Type- Beneficiary

Retirement Date- April 1, 1997

Source: This information was secured through a FOIA request from the city of Providence.

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#11

Name- Robert Read

Annual Earning- $123,105.00

Postition- Fire-4

City- Cranston

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 19, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#10

Name- Alfred Bertoncini

Annual Earning- $123,599.16

Postition- Fire-4

City- Smithfield

State- RI

Retirement Type- Service

Retirement Date- December 19,1994

Source: This information was secured through a FOIA request from the city of Providence.

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#9

Name- Victor Dichiara

Annual Earning- $126,845.28

Postition- Fire-4

City- East Greenwich

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 17, 1992

Source: This information was secured through a FOIA request from the city of Providence.

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#8

Name- Edmund Calcagni

Annual Earning- $135,702.72

Postition- Police-5

City- North Providence

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 29, 1990

Source: This information was secured through a FOIA request from the city of Providence.

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#7

Name- James Kelly

Annual Earning- $137,336.04

Postition- Fire-4

City- Greenville

State- RI

Retirement Type- Accidental Disability

Retirement Date- September 28, 1988

Source: This information was secured through a FOIA request from the city of Providence.

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#6

Name- Vincent Delisi

Annual Earning- $145,520.88

Postition- Fire-4

City- North Providence

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 17, 1992

Source: This information was secured through a FOIA request from the city of Providence.

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#5

Name- William Manchester

Annual Earning- $148,839.84

Postition- Fire-4

City- Warwick

State- RI

Retirement Type- Accidental Disability

Retirement Date- December 19, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#4

Name- William D'Iorio

Annual Earning- $156,870.60

Postition- Fire-4

City- Smithfield

State- RI

Retirement Type- Accidental Disability

Retirement Date- Novemver 29, 1990

Source: This information was secured through a FOIA request from the city of Providence.

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#3

Name- Anthony Sauro

Annual Earning- $161,487.24

Postition- Fire-4

City- Johnston

State- RI

Retirement Type- Accidental Disability

Retirement Date- July 5, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#2

Name- Robert Anthony

Annual Earning- $162,944.04

Postition- Fire-4

City- Smithfield

State- RI

Retirement Type- Accidental Disability

Retirement Date- September 25, 1991

Source: This information was secured through a FOIA request from the city of Providence.

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#1

Name- Gilbert McLaughlin

Annual Earning- $196,813.08

Postition- Fire-4

City- Warwick

State- RI

Retirement Type- Accidental Disability

Retirement Date- October 24, 1991

Source: This information was secured through a FOIA request from the city of Providence.

 
 

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