News Release
U.S. Department of Justice
United States Attorney
District of Rhode Island
August 7, 2007
Former RISD fire safety manager admits fraud
Patrick Clyne, of Providence, pleaded guilty today to mail and tax fraud charges, admitting that he defrauded the Rhode Island School of Design out of nearly $1,000,000 in a fraudulent billing scheme. Clyne, who was fire safety manager for RISD, set up a shell company that billed RISD for work that was never actually performed.
United States Attorney Robert Clark Corrente announced the guilty plea, which Clyne entered today before Chief U.S. District Court Judge Mary M. Lisi in U.S. District Court Providence.
Clyne, 65, pleaded guilty to an information filed last week, charging him with one count of mail fraud and one count of filing a false tax return. An indictment returned in March accused both Clyne and his wife, Ibtisama Bradley, with participating in the scheme. As a result of today’s plea, the government will file a motion to dismiss that indictment, and Bradley will not face any additional charges.
From 1997 to November 2005, Clyne was employed by RISD as Manager of Fire Safety. He was responsible for overseeing and maintaining fire safety equipment, including alarm systems, emergency lighting, and fire extinguishers, and had the authority to request and approve fire safety work for the school.
At the plea hearing, Assistant U.S. Attorney Andrew J. Reich said the government could prove that, in 1997, Clyne caused a company called Ankh Electric Ltd to be incorporated, and a bank account to be opened in the company’s name.
Between 1997 and 2005, Clyne approved fraudulent invoices for fire safety work purportedly performed by Ankh Electric for RISD. As a result, RISD mailed checks to Ankh Electric, initially to 88 Manton Avenue, and subsequently to a Post Office box in Providence. Over eight years, the fraudulent invoices totaled $981,794. Ankh Electric did not provide the services described in the invoices.
Assistant U.S. Attorney Reich said the government could also prove that Clyne filed a false income tax return for 2003, failing to report all of $180,754 that RISD paid to Ankh Electric in 2003. Under the terms of his plea agreement, Clyne admitted to a total tax loss to the government of $162,743 between 2001 and 2005.
Clyne is free on bond pending sentencing, which is scheduled for November 2. The maximum penalty for mail fraud is 20 years in prison and a $250,000 fine. The maximum penalty for filing a false tax return is three years in prison and a $250,000 fine.
Clyne has also agreed to forfeit to the government any ownership interest in property that he and Bradley purchased in Ballinamore, Ireland, with proceeds of the fraud scheme. Clyne and Bradley were in Ireland when the indictment was returned in March, and subsequently returned to the United States.
The U.S. Postal Inspection Service and the Internal Revenue Service, Criminal Investigation conducted the investigation.
Contact: 401-709-5032 Thomas.connell@usdoj.gov