Some of RI’s Top Restaurants Scammed By Alleged Fraud
Wednesday, August 18, 2021
More details are emerging regarding the man involved in the alleged nearly $1 million seafood fraud in Ri. Photo: GoLocal File
On Monday, Providence resident Paul Diogenes was charged and ordered detained in federal custody, after he reportedly eluded arrest ten days ago by "ramming federal law enforcement vehicles, nearly running down an FBI agent and task force officer in the process,” according to the U.S. Attorney.
Federal court documents signed by a Federal Bureau of Investigation (FBI) official show how Diogenes perpetrated a complex plot to establish a non-registered catering business called Lepage Catering “for the purpose of enriching himself” — and that he had previously been reportedly involved in identity theft and criminal activity.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAccording to one of the business owners impacted — who GoLocal agreed not to identify — the effects of the alleged criminal actions have been devastating.
“I feel like I’m probably going to go under,” he said. “The FBI told me I’d be OK, the State Police said I’d be OK — I don’t feel OK.”
Court Documents
Federal court documents by the FBI agent allege that Diogenes — who also went by the name "Paul Dejullio" — set up the non-registered catering company “Lepage Catering” that perpetrated a fraud that injured no fewer than eight businesses.
“Credit applications submitted to the food distribution companies in the name of Lepage Catering contained banking account information obtained fraudulently from local restaurants and businesses,” reported the FBI agent. “In total, DIOGENES fraudulently obtained approximately $831,769.65 of food and product from [Performance Food Group], [Reinhart Food Service] and US Foods, including hundreds of thousands of dollars worth of lobster, sea bass, shrimp, scallops, filet, rib eye steak and wild boar. DIOGENES then resold the items to other companies and, in some cases, resold the items back to the businesses that he obtained the banking account information from.”
Restaurants impacted in Rhode Island, in addition to Capriccio and Mare, included Riviera and Digger’s Catch in East Providence, and Wilfred’s in Woonsocket.
According to the court filing, the Director of Operations of Mare on the East Side of Providence, became aware “on or about January 5, 2021, that there was an unauthorized withdrawal from Mare’s bank business account… in the amount of $80,707.50.”
“Records obtained from [the bank] show that on January 5, 2021, an Automated Clearing House (ACH) wire withdrawal was made from the Mare business account in the amount of $80,707.50 that was paid to [Performance Food Group], a food distribution company,” according to the affidavit. “When PFG was notified of the unauthorized wire withdrawal, the $80,707.50 wire was reversed and deposited back into Mare’s Washington Trust businesses account.”
As the affidavit states:
Documents obtained from Performance Food Group (“PFG”), Reinhart Food Service, LLC (“RFS”) and U.S. Foods list “Paul Dejullio” as the President of Lepage Catering and E.L. as the Vice President. As detailed [in the] investigation, it was revealed that DIOGENES fraudulently obtained and utilized the identifiers of [certain individuals] and others to perpetrate the scheme to defraud.
To effectuate the scheme, DIOGENES opened accounts and applied for credit with three (3) separate food distribution companies, PFG, RFS and U.S. Foods. These companies distribute food and other products to restaurants and businesses across the nation.”
Similarly, Capriccio became aware of unauthorized bank withdrawals due to the alleged scheme.
According to the documents, on March 17, 2021, Capriccio’s bookkeeper filed a complaint with the Providence Police Department regarding unauthorized charges on their business checking account.
She told police that while reviewing Capriccio’s business account, she became aware that there were numerous unauthorized [automated clearing house] withdrawals from RFS Boston for Lepage Catering. [She] stated the unauthorized ACH withdrawals paid to RFS between February 2021 and March 2021 totaled $218,713.16.
According to Capriccio’s, it had never done business with Lepage Catering.
The federal affidavit alleged that Diogenes perpetrated the fraud by providing restaurants’ banking account information — not “Lepage Catering” — to the food delivery businesses listed for purposes of withdrawals.
Diogenes' reported prior identity theft and fraud was documented in the affidavit.
[An individual] told investigators that in or about March of 2018, while working as a cook at Jerry Remy’s Restaurant, Fall River, MA, his identity was stolen by defendant DIOGENES. DIOGENES also worked at the restaurant as a cook at the same time that [the individual] was employed there.
On April 26, 2018, NBC 10 News posted a photo of DIOGENES with the caption, “A Massachusetts man is wanted by authorities on multiple charges, including identity fraud, attempt to commit a crime, forgery, uttering and larceny”.
In or about May of 2018, DIOGENES was arrested by Cranston Police Department, Cranston, RI. In his possession at the time of the arrest was identification in the name of [the individual.]
None of the businesses listed as defrauded by Diogenes responded to request for comment on Tuesday.
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