PROVIDENCE – A North Kingstown contractor pleaded guilty to bankruptcy fraud, money laundering and other charges, U.S. Attorney for Rhode Island Zachary A. Cunha announced Wednesday.
Ernest P. Ricci, 62, admitted to a federal judge he executed multiple schemes, made false representations, intentionally omitted significant information in filings and intentionally obstructed proceedings before the U.S. Bankruptcy Court, all in an attempt to conceal his assets during bankruptcy proceedings.
Understanding Stroke: Essential Information for Immediate Action
Stroke is a leading cause of death and long-term disability in the United States, impacting…
Learn More
While appearing in U.S. District Court, Ricci admitted he failed to disclose he had rental properties in both Florida and New Hampshire and that he engaged in money laundering to hide the funds he received after fraudulently applying for COVID-related Paycheck Protection Program and Economic Injury Disaster Loans from the U.S. Small Business Administration
Ricci added that in October 2017 he transferred all of the assets of his business, Premier Home Restoration LLC, to his wife prior to filing a Chapter 7 bankruptcy petition. This was an attempt to protect a $1.5 million dollar home in Florida that both he and wife rented out and used as a vacation home, despite failing to make any mortgage payments on the property over the last five years.
In addition to that home, Ricci said that he also failed to disclose another rental property he owned in New Hampshire, which also generated rent payments.
Under oath, Ricci admitted that he submitted false documents to the bankruptcy court, claiming he had no income, no bank accounts or other assets or properties other than the Florida home. During this time, he continued to run Premier’s day-to-day operations and used that income to support his lifestyle.
According to information presented to the court, after the bankruptcy trustee was declared to be the equitable owner of Ricci’s former company, Premier, Ricci fraudulently applied for COVID-related Paycheck Protection Program and Economic Injury Disaster Loans, supposedly to pay Premier employees and company expenses.
When filing, Ricci failed to disclose that the trustee was the owner of Premier, and that he and the company were involved in bankruptcy proceedings.
Ricci is scheduled to be sentenced on Feb. 22.
