Mollicone Indicted In R.I. Bank Crisis

PROVIDENCE, R.I.

The banker blamed for triggering Rhode Island's banking crisis has been indicted on fraud and embezzlement charges for allegedly stealing $15.8 million from the bank he headed.

Joseph Mollicone Jr. was charged yesterday with six counts of embezzlement, two counts of conspiracy and 37 counts of bank fraud.

Mollicone allegedly drained the money between 1985 and 1990 from Heritage Loan and Investment Co. Its collapse pulled down its private deposit insurer, which forced Gov. Bruce Sundlun to close 45 banks and credit unions in January 1991. Most reopened within a week, but the bailout may cost $800 million.