Charles F. Denno, Wire Fraud, Rhode Island 2017

PROVIDENCE, RI – Charles F. Denno, 66, of East Providence, is facing up to 20 years in federal prison after pleading guilty today to defrauding the Providence Plan out of $742,190.69. The former finance director confessed in federal court to a calculated scheme to line his own pockets with funds earmarked for educational programs for Rhode Island children and adults.

The Providence Plan, a non-profit reliant on federal, state, and private grants – including significant funding from the U.S. Department of Education and the Bloomberg Family Foundation – annually receives over four million dollars in federal grant money. Denno exploited his position of authority to divert these crucial resources for his personal gain, investigators say. This wasn’t a simple accounting error; it was a deliberate and sustained theft.

According to court documents, Denno’s fraud spanned from November 2012 through July 2016. He directed funds from the Department of Education and the Bloomberg Family Foundation into Providence Plan bank accounts, then systematically transferred them to accounts he controlled. The scheme involved issuing checks made payable to CMG Enterprises, a shell company owned by Denno, forging the signature of an authorized check signer.

The stolen funds weren’t hidden away in some offshore account. Denno brazenly used the money for personal expenses, including numerous withdrawals in the form of credit card payments, check payments, and, notably, ATM cash withdrawals at the Twin River Casino. Sources close to the investigation indicate Denno enjoyed a lavish lifestyle funded by the stolen grant money.

The guilty plea to one count of wire fraud was announced by Acting United States Attorney Stephen G. Dambruch, Rhode Island State Police Superintendent Ann C. Assumpico, U.S. Department of Education Office of Inspector General Special Agent in Charge Brian Hickey, and FBI Boston Division Special Agent in Charge Harold H. Shaw. Denno appeared before U.S. District Court Chief William E. Smith to admit his crimes.

Denno is scheduled for sentencing on June 23, 2017. If convicted, he faces a statutory maximum of 20 years imprisonment, three years of supervised release, and a fine of up to $250,000. The investigation was spearheaded by the Rhode Island State Police Gaming Enforcement Unit, the U.S. Department of Education Office of Inspector General, and the FBI. Assistant U.S. Attorney John P. McAdams is prosecuting the case.

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