North Kingstown contractor pleads guilty to fraud, money laundering charges

PROVIDENCE, R.I. (WLNE) — A North Kingstown man working as a self-employed contractor admitted to a federal judge that he committed perjury, omitted information in his filings and intentionally obstructed proceedings of the U.S. Bankruptcy Court, U.S. Attorney Zachary Cunha said Wednesday.

According to court documents, 62-year-old Ernest Ricci also admitted that he applied for and received COVID-related Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) from the Small Business Administration which he laundered in an effort to conceal the funds.

Ricci pleaded guilty Wednesday to charges of bankruptcy fraud, obstruction, suborning perjury, wire fraud and money laundering.

Back in October of 2017, prior to filing a petition for bankruptcy in an attempt to protect a $1.5M home in Florida that him and his wife used as a rental property, and on which he did not make any mortgage payments for five years, Ricci transferred all assets of his business, Premiere Home Restoration LLC, to his wife.

Ricci admitted that he then falsely submitted documents saying he was unemployed for several years, that he had no income, that he received no compensation from his wife’s company, had no bank accounts and had no assets or properties other than the home in Florida.

Ricci also admitted that while filing for bankruptcy, he fraudulently applied for COVID-related PPP and EIDL loans from the Small Business Administration and laundered those funds to purchase a rental property in Warwick.

He is scheduled to be sentenced on February 22, 2024.