FBI visits City Hall – pair in tax office arrested
PROVIDENCE – FBI agents last Wednesday arrested two city officials on charges of money laundering, as part of an ongoing investigation by the U.S. Attorney’s office. Joseph Pannone, 76, chairman of the five-member Board of Tax Assessment Review and David Ead, 57, vice chairman of the board, appeared before a U.S. District Court magistrate where they were formally charged with conspiracy and money laundering. FBI agents entered City Hall shortly after 9 a.m., and headed to room 208 where they set off a media frenzy by shutting the doors to the tax assessor’s office and posted a guard outside. Providence Mayor Vincent A. Cianci, Jr., was not at City Hall at the time of the raid. He would say only that he was “very concerned” about the investigation. U.S. Attorney Margaret E. Curran said the investigation into corruption at City Hall is ongoing and would continue. She added that there is already evidence that others may be involved. Curran asked anyone with evidence of wrongdoing at City Hall to call the FBI’s Providence office at 272-8310.
Washington Trust to open office downtown
WESTERLY – Washington Trust Bancorp will open a new trust and investment management office in downtown Providence by early fall. Founded in 1800, Washington Trust – once the Fleet and BankBoston Corp. merger is complete – will be the fourth-oldest bank in the country. At its annual meeting last week, the bank reported that revenues from its trust and investment department grew 17 percent, to $5.2 million in 1998, as compared with a year ago.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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Regulators seek inquiry of electric rates
PROVIDENCE – The Division of Public Utilities & Carriers and the Attorney General’s office asked for an investigation of Blackstone Valley Electric Co. and Newport Electric Corp.’s rates last Tuesday. The electric utilities “made too much money” by exceeding the allowed 11 percent rate of return the last three years, according to Stephen Scialabba, the Division’s chief accountant. In 1998, the Eastern Utilities Associates’ subsidiaries had a 13.32 percent return rate. If the Public Utilities Commission agrees to an investigation, it could order lower rates and refunds.
Boss stepping down at A.T.Cross
LINCOLN – Russell A. Boss, president and chief executive officer of the A.T.Cross Co. announced at the company’s annual meeting recently that he will step down from those positions and assist in the search for his successor. As a result the company will be run by someone other than a member of the Boss family since Walter R. Boss bought the firm in 1846 from Alonzo Townsend Cross, son of the founder of the company. A.T. Cross manufactures quality pens as well as innovative computer driven communications devices. The pens which once were very popular and profitable have not been quite so popular or profitable in recent years, while the new products have been well received, but have yet to achieve profitability.
Olsten health services closes Providence office
PROVIDENCE – The Olsten Corp. has closed its office here and laid off six full-time administrators and clerical workers. The company also announced that about 25 part-time workers were affected by the closing but suggested they, as well as their patients, would move to other providers. Olsten Health Services reports that it serves about 125 patients in the city and that under federal Medicare rules must arrange care for those patients. Olsten, based in Melville, N.Y., announced in March that it would be closing 15 unspecified nursing offices nationwide to save money. It also announced that it would be taking a special charge of about $70 million to pay for settling federal investigations into its Medicare cost reports and transactions with Columbia/HCA Health Care Corp., according to the Providence Journal.
P&W claim to waterfront land upheld
EAST PROVIDENCE – The state Supreme Court has upheld a Providence & Worcester Railroad claim to 33 acres of waterfront land just south of the Wilkes Barre pier in this community, thus reviving the prospect of a rail-container port project. P&W constructed an earthen berm around the site years ago after obtaining the necessary permits from state and city agencies. Its stated long-range intention at the time was to create a ship to rail link with the main east-west rail freight line in central Massachusetts. With clear title to the filled land, which the state had claimed under public trust legal principles, P&W will be able to attract investors or development partners for the site.
State decides not to act against HealthSouth
PROVIDENCE – The state Department of Health has informed the lawyer for HealthSouth, the Alabama-based health services corporation, that it will take no action against the Rehabilitation Hospital of Rhode Island which was acquired by HealthSouth in 1997. The department had questioned whether HealthSouth had complied with the state’s hospital sales law. HealthSouth acquired a half interest in Rehabilitation Hospital as part of its acquisition of Horizon/CMS Healthcare Corp.’s 31 rehabilitation hospitals. In its letter to HealthSouth’s attorney, the health department said it disagreed with several of his arguments in his response to the department’s inquiry, but that it had decided not to pursue the matter “at this time.” The department offered no explanation for its position.
Lottery board approves more slot machines
CRANSTON – Despite Gov. Lincoln Almond’s vigorous objection, the state Lottery Commission has approved in a 5-to-4 vote a doubling of slot machines for the state’s two gambling centers, in Lincoln and Newport. An additional 500 machines would be put into the Lincoln facility, while Newport would add 350. That would bring the state’s total number of legal slot machines to 2,478, compared with Foxwoods Casino’s approximately 6,000 machines in nearby Connecticut. Almond said the decision amounted to “a tax on people who can least afford it.”
