A Coventry man is among six suspects arrested for their participation in one or more mortgage fraud schemes netting an excess of $3.9 million in mortgage financing obtained under false pretenses, the State Police announced Monday.
The arrests are a result of a joint investigation between the Rhode Island State Police Financial Crimes Unit and Department of Attorney General, State Police Colonel Steven O’Donnell and Attorney General Peter Kilmartin announced.
In August 2010, the Financial Crimes Unit received information that in 2006, a residential property located at 375 Ocean road in Narragansett had been sold for $2.4 million, a price that was significantly higher than the market value could support. In May 2010, the property was foreclosed on and sold for $610,000.
The investigation revealed the suspects included the owner of the property, Frederick Carrozza Sr., 85, of 6 Carriage Cove Court, Coventry, a close confidante of former New England crime boss Raymond Patriarca. The suspects allegedly used fraudulent information to obtain mortgage financing for more than $2.2 million.
In addition to the Narragansett property, Eugene O’Brien, 52, of 1074 County St., New Bedford, MA, also allegedly obtained financing of $1.1 million by false pretenses to purchase three more properties — 44 Summit road, Portsmouth; 7 Garrett St., New Bedford, MA; and 74 Bradley Ave., Somerset, MA.
The investigation also revealed that Kenneth Mollicone, an alleged co-conspirator in the Narragansett property fraud, was involved in a fraudulent scheme to effectuate the financing of $580,500 for the purchase of a property at 129 Fairwood Drive, Tiverton.
On Thursday, April 4, the joint investigation resulted in a grand jury reporting out secret indictments against the following individuals:
- Eugene O’Brien, 52 of 1074 County St., New Bedford, MA.:
- 5 counts of Obtaining Money under False Pretenses over $1,500
- Conspiracy
- Filling a False Document
- Frederick Carrozza, Sr., 85, of 6 Carriage Cove Ct., Coventry, RI.:
- Obtaining Money under False Pretenses over $1,500
- Conspiracy
- Kenneth Mollicone, 38, of 281 Whetstone Hill Rd., Somerset, MA.:
- 2 counts Obtaining Money under False Pretenses over $1,500
- 2 counts of Conspiracy
- Harlan Shabshelowitz, 64, of 14 Anchor Dr., Somerset, MA.:
- Obtaining Money under False Pretenses over $1,500
- Conspiracy
- Verna Gauthier, 73, of 27 Bond St., Providence, RI.:
- Aiding & Abetting
- Filling a False Document
- Bryan K. Tobey, 49, of 544 Warren Ave., East Providence, RI.:
- Obtaining Money under False Pretenses over $1,500
- Aiding & Abetting
The Rhode Island State Police Violent Fugitive Task Force, along with Massachusetts State Police Violent Fugitive Apprehension Team, Somerset Police and New Bedford Police, arrested the suspects in Massachusetts. They will be arraigned as fugitives from justice and will face extradition to Rhode Island. Those arrested in Rhode Island were arraigned at Providence Superior Court by and released on $10,000 personal recognizance.