Gordon Fox charged with bribery, wire fraud, filing false tax return

FORMER R.I. HOUSE SPEAKER Gordon D. Fox converses with Cranston Mayor Allan Fung during the opening of the 2011 legislative session. Fox has agreed to plead guilty to three felony charges brought by U.S. Attorney Peter F. Neronha. / PBN FILE PHOTO/RYAN T. CONATY
FORMER R.I. HOUSE SPEAKER Gordon D. Fox converses with Cranston Mayor Allan Fung during the opening of the 2011 legislative session. Fox has agreed to plead guilty to three felony charges brought by U.S. Attorney Peter F. Neronha. / PBN FILE PHOTO/RYAN T. CONATY

(Updated 12:02 p.m.) PROVIDENCE – Former R.I House Speaker Gordon D. Fox has been charged with three felonies – bribery, wire fraud and filing a false tax return – and pending court approval of a plea agreement, he could spend up to three years in prison, according to U.S. Attorney Peter F. Neronha.
Neronha said the charges stem from Fox’s “substantial abuse of his campaign account to pay for his personal expenses, and his solicitation and acceptance of a bribe in exchange for using his official position as vice-chairman of the city of Providence Board of Licenses in 2008 to advocate and move for the granting of a liquor license for a Thayer Street restaurant.”
Fox, 53, of East Providence, became House speaker in 2010, holding that position until his resignation last March after the FBI raided his State House office. The charges come after an 18-month federal grand jury investigation by prosecutors from the U.S. Attorney’s Office, R.I. Attorney General’s Office, FBI and state police.
He maintained a campaign organization, “Friends of Gordon Fox,” through which he raised money from individuals and political action committees purportedly to retain his public office and position as speaker. Those funds can only be used to obtain or retain public office, and cannot be used for personal expenses, in accordance with state election laws.
But over a six-year period, from 2008 to 2014, Fox used $108,000 of campaign money to pay for his mortgage, car loan payments and his American Express credit card, which was used to make purchases from establishments, including Tiffany’s, TJ Maxx, Target, Walmart, Urban Outfitters and the Warwick Animal Hospital, Neronha alleges.
The U.S. attorney also says Fox – while serving as vice-chairman of the Providence Board of Licenses – in 2008 agreed to accept bribes from partners of the Shark Sushi Bar and Grill Inc., at 275 Thayer St., in the amount of $52,000.
Neronha alleges Fox accepted the bribe money in exchange for supporting and advocating in favor of the Shark Bar’s application for a liquor license.
Owners of the Thayer Street restaurant-bar on Tuesday morning could not immediately be reached for comment, but Secretary of State records from January show Raymond P. Hugh as the registered owner of the establishment. Hugh was also the registered owner in 2008, according to records.
When asked whether charges would be brought against those involved with bribing Fox, Neronha didn’t provide a clear answer.
“Whether or not they should be charged is under review,” he said. “It is certainly something we need to look at.”
The U.S. attorney was equally unclear about how the investigation started, saying, “I can’t get into all of the details of that,” but did say it originated as “a result of another investigation.”
Also filed in federal court Monday was a plea agreement, which if accepted by the general court, will send Fox to federal prison for three years. Fox was scheduled to be arraigned in U.S. District Court on the charges at noon.
The information was unsealed this morning and Neronha took note of the political corruption he’s seen in Rhode Island since becoming U.S. attorney.
“Just in federal court alone, we have convicted three town councilmen, a mayor, a state senator, and the deputy speaker of the House of Representatives … Attorney General [Peter F.] Kilmartin could give you his own list,” Neronha said, adding that something needed to be done.
“As Rhode Islanders, we need to lose our political corruption amnesia. In general, I believe in rehabilitation and second chances, but I do not believe that those who have sworn to uphold the public trust and violated it, and been given the enormous opportunity and privilege to serve the public and abuse it, should ever be given that opportunity again,” he said.
Providence Mayor Jorge O. Elorza released a statement about Fox.

“Public corruption at any level of government will not be tolerated. I am particularly disappointed that an important city board was used as an avenue for such corruption. I applaud the work of the U.S. Attorney, the Attorney General and other law enforcement entities in prosecuting this case and bringing it to justice. My administration is investigating whether the license can be legally revoked,” Elorza said.
Gov. Gina M. Raimondo said it was a “sad day for Rhode Island” and called the situation unacceptable.
“We owe it to the citizens of Rhode Island to do better. Elected officials must always uphold the highest ethical standards – people deserve honest government,” Raimondo said.

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