He told investigators they were too stupid to catch his scam. Now he's pleading guilty.
PROVIDENCE – Ernest P. Ricci, who lied and schemed and taunted federal investigators in obscenity-laced emails that they were too witless to catch on to his bankruptcy scam, on Wednesday changed his plea to guilty.
“Do you admit the facts that the government has stated are true?” asked Chief U.S. District Judge John J. McConnell Jr.
Ricci, a self-employed contractor from North Kingstown who tried numerous criminal ways, the government contended, to hide property in his bankruptcy and illegally obtained money through pandemic relief funds, waffled at first.
“There are some things there that I would explain or give my side of the story to,” Ricci began. But “I don’t want to do any of that if it’s going to jeopardize the plea agreement.”
McConnell suggested Ricci speak again to his lawyer Edward C. Roy, who for months has tried to withdraw from the case, citing “deteriorated” differences with his client.
After a few minutes Ricci came around. The judge asked again if he agreed to the facts. This time Ricci said, “Yes, judge.”
Background on the case
Ricci, who flipped houses with his wife, Brenda, faced charges of bankruptcy fraud, suborning perjury, obstruction of bankruptcy proceedings, wire fraud and money laundering.
If all the penalties for the charges he has now pleaded guilty to are imposed consecutively, he faces a potential of 65 years in prison and a fine of $1.5 million, said McConnell.
Ricci admitted that in October 2017, prior to filing a Chapter 7 Bankruptcy petition in an attempt to protect a $1.5-million home in Florida used as a vacation home and rental property – and on which he had failed to make any mortgage payments for about five years – he transferred all his business assets in Premier Home Restoration LLC (Premier) to his wife.
But on Wednesday, Ricci admitted that he in fact continued to control Premier and run its day-to-day operations, and that he made use of income from the company to maintain his lifestyle. He disclosed none of it to the bankruptcy court.
Ricci, who is 62, appeared more agreeable in U.S. District Court on Wednesday than he did in April when a federal prosecutor told the court Ricci was still attempting to intimidate witnesses in his case after a judge had ordered him to avoid all contact with them.
When the judge said she was therefore prepared to hold him behind bars, Ricci broke in and addressed the judge as his lawyer Roy advised him to keep quiet. When Ricci ignored his lawyer’s advice, Roy suggested he should get a new lawyer.
In earlier situations Ricci did not seem too concerned about a case that threatened to put him behind bars.
In April 2020, as investigators began their probe into his bankruptcy claim, he wrote an email to them that said “I’m sure you realize now I’ve been three steps ahead of you Bozos all the way and that’s because I’m smarter than all of you combined.”
Weeks later, when a federal bankruptcy trustee pressed Ricci to turn over financial records from the couple’s business, Premier Home Restoration, Ricci distinctly announced his non-cooperation:
“Here’s my response. GO [expletive] YOURSELF Charlie. How’s that?”
“The party’s over [expletive],” his email continued, court documents show. “Move on and admit you [expletive] with the wrong guy. ITS OVER!!! Lololol Ernie Ricci.”
FBI agents arrested the Ricci pair in March 2023.
Federal authorities charged them with years of unlawful scheming to conceal “substantial assets” from the U.S. Bankruptcy Court, including a boat, rental money from properties in New Hampshire and Florida, personal income and COVID relief money.
Prosecutors said the couple used the relief money to buy rental property in Warwick through a straw buyer to hide their ownership.
More: Charged with bankruptcy fraud, Ernest Ricci shows disdain for the court, prosecutors say
Ernest Ricci even presented a fake Rolex watch to a bankruptcy trustee so he wouldn’t have to surrender a real one, the government contends.
In arguing last April that Ricci be held without bail after he violated the judge’s no-contact order, Assistant U.S. Attorney John P. McAdams said: "This behavior is in utter contempt of the court’s release order. It is also completely consistent with Ricci’s flagrant disregard for court rules and orders throughout the bankruptcy proceedings.... There are no conditions of release which can prevent Ricci from attempting to obstruct justice because Ricci does not respect court orders.”
On Wednesday, McAdams said Ricci had harassed and threatened bankruptcy officials, and masqueraded as a co-conspirator, using that person’s email to contact his lawyer and try to direct the case in the best light for him.
He’s now scheduled to be sentenced on Feb. 22, 2024.
Contact Tom Mooney at: tmooney@providencejournal.com
This article originally appeared on The Providence Journal: N. Kingstown contractor defied US officials investigating him. Now he's admitting all
