6 Charged With Mortgage Fraud For Gansett Property

Six suspects were arrested for their alleged participation in one or more mortgage fraud schemes that netted an excess of $3.9 million in financing, 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 and Filling a False Document.
• Frederick Carrozza, Sr., 85, of 6 Carriage Cove Ct., Coventry – Obtaining Money under False Pretenses over $1,500 and Conspiracy.
• Kenneth Mollicone, 38, of 281 Whetstone Hill Rd., Somerset, MA – 2 counts of Obtaining Money under False Pretenses over $1,500, and 2 counts of Conspiracy.
• Harlan Shabshelowitz, 64, of 14 Anchor Dr., Somerset, MA – Obtaining Money under False Presentenses over $1,500 and Conspiracy.
• Verna Gauthier, 73, of 27 Bond St., Providence – Aiding and Abetting, and Filing a False Document.
• Bryan K. Tobey, 49, of 544 Warren Ave., East Providence – Obtaining Money under False Pretenses over $1,500, and Aiding and 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 and released on $10,000 personal recognizance.

In December 2011, O’Brien and his brother, Timothy E. O’Brien, 55, were also charged with fraud related to the Ocean Road property. For the original report on that, click here.