“House-Flipping” RI Contractor to Plead Guilty to Bankruptcy Fraud and Money Laundering Charges

“House-Flipping” RI Contractor to Plead Guilty to Bankruptcy Fraud and Money Laundering Charges

A North Kingstown self-employed contractor who “flipped houses,” who was charged this past March in federal court with executing schemes to conceal substantial assets from the U.S. Bankruptcy Court in Providence, as well as money laundering and wire fraud, has agreed to plead guilty to multiple charges. 

Charging documents alleged that Ernest P. Ricci and his wife, Brenda L. Ricci, had been accruing “large, outstanding debts to creditors and to the IRS dating back to 2004 and that they have engaged in conduct designed to evade their creditors since 2011.”

It marks the latest legal action for Ernest Ricci — who in April had his bail revoked after guns were found in his country club locker. 

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Court documents show that Ricci requested medical release for treatment that same month, alleging that in the first three weeks he was detained at Wyatt he lost approximately 24 pounds, "more than 20% of his body mass.”

He was released in June and ordered to surrender his passport, with his travel restricted to Rhode Island and Massachusetts with GPS location monitoring. 

In August, Ricci’s then-attorney Edward Roy made a motion to withdraw as counsel.

“Mr. Ricci has undertaken a course of action that has undermined the ability of defense counsel to effectively represent him,” wrote Roy. “As a result, defense counsel’s relationship with Mr. Ricci has deteriorated to the point where he cannot effectively represent him consistent with the required rules of professional responsibility.” 

Brenda Ricci has not entered into a plea agreement. 

 

About Plea Agreement 

According to the plea agreement entered on Tuesday, Ernest Ricci will plead guilty to bankruptcy fraud, subornation of perjury, obstruction of bankruptcy proceedings, wire fraud, and money laundering. 

In exchange for Ricci’s guilty plea, “The government agrees to recommend a two-level reduction in the offense level for acceptance of responsibility….if defendant continues to demonstrate acceptance of responsibility through sentencing.” 

Under the plea agreement, the government will dismiss two counts — aggravated identity theft and tax evasion; the government will also not bring additional charges of false tax returns. 

“If imposed consecutively, the maximum penalties for all offenses to which Defendant is pleading guilty are 65 years imprisonment; a fine of $1,500,000; and a term of supervised release of 3 years,” according to the plea agreement.