Alleged Scam Artist’s Campaign Cash Has Not Been Returned
Thursday, December 01, 2011
Local elected officials who received thousands of dollars in campaign contributions from the Cranston attorney and estate planner accused of coordinating a $25 million insurance scheme are divided over if and when they’ll return the money, GoLocalProv has learned.
Joseph Caramadre and a former employee plead not guilty Wednesday to charges they stole and used the identities of terminally-ill patients and elderly individuals to obtain millions from insurance companies. Caramadre and Raymour Radhakrishnan have been charged with conspiracy and multiple counts of mail fraud; wire fraud, identity theft, aggravated identity theft, and money laundering, according to U.S. Attorney Peter Neronha.
Records show Caramadre and his wife Paula were generous to elected officials and political organizations both in Rhode Island and across the country over the past 11 years, contributing more than $250k since 2000. The largest contributions went to the Democratic Senatorial Campaign Committee, the House and Senate Victory Fund, the Democratic Congressional Campaign Committee and Sec. of State Hillary Clinton’s failed presidential bid.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTWhitehouse/Langevin Received Big Bucks
But next on the Caramardres’ list of top contributions is Senator Sheldon Whitehouse, who has received $18,100 in campaign funds between his Senate campaigns and his time as Attorney General. Whitehouse leads the way among locally elected officials when it comes to the amount received from the husband and wife.
Asked Wednesday if there is any plan to return the contribution, the Senator’s office told GoLocalProv Whitehouse is taking a wait-and-see approach.
“The allegations against Mr. Caramadre are serious, and if he is found guilty Sheldon’s campaign will donate the money to charity,” Seth Larson, spokesman for Senator Whitehouse said.
Congressman James Langevin is the only other elected official in Rhode Island still holding office who received more than $10,000 (former Gov. Don Carcieri received $14,000) from the Caramadre family.
Ed Giroux, Langevin’s campaign treasurer, said “I do not believe a decision has been made” when it comes to the $15,600 the Congressman received. Giroux then said he would contact Langevin’s campaign manager and return a phone call to GoLocalProv. The call was never returned.
Three e-mails sent in the morning, afternoon and evening to a spokesman for Congressman Langevin were also never returned.
Chafee Advisor: We’ll Talk About It
Governor Chafee, who received $500 from Paula Caramadre over 11 years ago, would not be able to return a contribution from his current campaign fund because the donation went to his now-closed Senate campaign. But Chafee’s treasurer Bill Facente said he plans to talk with the Governor about returning the money through his personal fund.
Because the contribution happened long before Caramadre was ever accused of any wrongdoing, Facente said he didn’t want to speculate on what the next steps would be, but he did say he knows how he would handle the situation if the contribution were made to the Governor’s campaign.
“If it were for the Governor’s campaign, I would say we need to refund the money,” Facente said. “It is a concern and I’m going to talk to him about how to handle it.”
State Rep: I Will Make Donation to Charity
One local lawmaker who has made up his mind about what to do with the money he received from Caramadre is State Representative Michael Marcello, who serves as vice-chair of the House Judiciary committee.
Marcello received $250 three years ago and said he plans to donate the money he received to charity.
“Mr. Caramadre made a one-time donation to my 2008 campaign for State Representative,” Marcello said. “At the time, he was a resident of western Cranston which is part of District 41. Although my 2008 campaign is long over and he has not made any donations to any subsequent campaigns in any amount, in order to avoid any distractions in my efforts to represent the residents of my District, my campaign will make a donation to a local charity in the same amount of his initial pledge, $250.00.”
Caramadre Maintains Innocence
After being released on $250,000 bond, Caramadre declared he is “completely innocent” and will be found not guilty.
“Nothing was taken from the terminally ill participants. There was no deception. There was no forgery,” he said. “My reputation and my life’s work speak to generosity and philanthropy and to helping those in need. The government’s allegations speak to taking advantage of those in need and that is clearly not the case. To the extent I can, I would like to be in continuing conversation with the public as we move through this process and discover the real facts associated with these allegations.”
Caramadre called the indictment “baseless and unfounded.”
“All I need is the truth to set me free, and the truth is easy,” he said.
Common Cause: Surprised More Distance Hasn’t Been Sought
While Caramadre is innocent until proven guilty, Common Cause Executive Direct John Marion said he is surprised politicians haven’t already chosen to return the contributions or donate them to charity. He said that it wouldn’t be the first time elected officials returned money with only an indictment in place.
“We've seen cases where even with only an indictment, because of the nature of the alleged crime, politicians want to distance themselves from donors,” Marion said. “Because of the nature of the allegations (scamming the terminally ill) and the fact that the donations may have come from the ill gotten gains, I'm surprised more politicians haven't sought to distance themselves from these donations.”
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