Fleet pays DEPCO $15.5 million

PROVIDENCE — Fleet Financial Group has agreed to pay the Depositors Economic Protection Corporation (DEPCO) $15.5 million to settle a lawsuit that was pending in the state Superior Court. DEPCO claimed that Fleet drafted a sham $3.5 million loan to Heritage Loan and Investment to make it appear that the bank was solvent. The bank’s president, Joseph Mollicone eventually embezzled $15 million and is currently in the Adult Correctional Institutions. DEPCO had also alleged that Fleet helped Jefferson Loan & Investment make its books appear better than they were. Both Heritage and Jefferson defaulted on obligations to depositors. Fleet denied any wrongdoing while agreeing to settle the court action with the payment to DEPCO.