Former ProvPlan Finance Director Denno to Plead Guilty to Fraud
Friday, January 27, 2017
Former ProvPlan Finance Director Charles Denno has agreed to plead guilty to devising and executing a sham in which he fraudulently converted over $500,000 of ProvPlan funds for his own use, according to documents filed in U.S. District Court in Providence on Thursday.
“The Providence Plan receives a tremendous amount of federal, state and private funds each year for a laudable purpose: to provide educational and other programs to children and adults who would otherwise not have access to them. Every dollar the defendant stole – and he stole an outlandish amount – could have served someone who really needed it. It is precisely this type of conduct that gives rise to unwarranted public cynicism regarding such worthy programs. I want to thank the Providence Plan for their assistance and cooperation in this matter, once the defendant’s criminal conduct was discovered,” said United States Attorney Peter Neronha.
Latest in Controversy
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe announcement is the latest in the ProvPlan saga. In September, GoLocal reported:
The leadership at ProvPlan won't say a word, and the Rhode Island State Police just learned of the resignation of ProvPlan's Executive Director on Tuesday, while conducting an embezzlement investigation into a former top employee.
ProvPlan Executive Director Pat McGuigan stepped down on Tuesday, following the recent firing and current RISP investigation of former ProvPlan Finance Director, Charles Denno.
McGuigan made $159,301 in base compensation and benefits in 2013, according to ProvPlan's most recent 990 filing.
Committing Fraud
According to court documents, from 2012 through July 2016, Denno used his authority to cause the U.S. Department of Education and the Bloomberg Family Foundation to deposit funds into Providence Plan bank accounts and fraudulently converted those funds to his own personal use. The total amount of funds fraudulently converted from the Providence Plan to Denno’s personal use was over $500,000.
In addition, according to court documents, Denno fraudulently prepared and issued Providence Plan checks made payable to CMG Enterprises, an entity he owned. The payments issued to CMG and deposited into a CMG bank account were not authorized and contained a forgery of the authorized check signing official at the Providence Plan. Denno then made multiple withdrawals from the CMG bank account in various forms, including credit card payments, check payments and ATM cash withdrawals at Twin River Casino.
Punishment
Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; 3 years supervised; and a fine of up to $250,000.
A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The matter, being prosecuted by Assistant U.S. Attorney John P. McAdams, was investigated by the Rhode Island State Police Gaming Enforcement Unit, the U.S. Department of Education Office of Inspector General and the FBI.
Related Articles
- NEW: Neronha Will Not Discuss Compassion Center Legislation
- John Perilli: Peter Neronha, US Attorney & Rising Political Star?
- NEW: ProvPlan Among Highest-Rated Applications For Federal Funding
- NEW: ProvPlan Offers Redistricting Maps Online
- NEW: ProvPlan Embezzlement Controversy Expands—McGuigan Resigns
- Criminal Probe: ProvPlan Refuses to Answer Questions
- ProvPlan Board Refuses to Respond to Questions, PR Statement Riddled With Errors
- ProvPlan’s Chair Spies Refuses to Answer Questions About Financial Crimes
- RI US Attorney Peter Neronha Appointed to Attorney General’s Advisory Committee
- NEW: Neronha Names Barton, Romero Assistant US Attorneys for District of Rhode Island
- NEW: Feds Prepared to Respond to Election Fraud & Voting Rights Abuse
- Barrington Businessman Indicted for Defrauding 9 Local Businesses
- NEW: RI State Police Investigating Department of Labor and Training for Fraud
- Drones, Ethics Reform, and Welfare Fraud: This Week At The State House
- See the Fox Charges - Wire Fraud, Bribery, and Filing False Tax Return
- Michael Riley: 38 Studios Insider Trade and Municipal Fraud
- NEW: RI Division of Taxation Issues E-Mail Fraud Alert
- RI State Report: Medicaid Fraud, Kidnapping + Seat Belt Laws
- State Report: Food Stamp Fraud, Tax Cuts, Tenants’ Rights + Grants
- RI Battles Over Photo ID Requirements to End Food Stamp Fraud
- Fraudulent Gift Certificates Force Chapel Grille to Stop Taking Faial’s Cards
- Pawtucket Supermarket Owner Sentenced for Stealing 400 Identities in $2.6M Tax Fraud Scheme
- Handwriting Expert Says Some Signatures in Jackson Recall Maybe Fraudulent
- NEW: Board of Elections Considers Frias’ Fraud Complaint, Allows Mail Ballot Count to Continue
- Magaziner Calls on Wells Fargo to Address “Unacceptable Consumer Fraud”
- Former RI Tax Preparer Sentenced to 36 Months in Prison for Tax Prep Fraud
- Can an Election Be Stolen? Here Are a Few Local & National Claims of Voter Fraud
- Riley: Wainwright Issues Cash Flow Report That Points to Providence Asset Fraud
