News Release
U.S. Department of Justice
United States Attorney
District of Rhode Island
December 4, 2007
Former RISD fire safety manager is sentenced for fraud
A federal judge today sentenced Patrick Clyne to 27 months in months in prison for mail and tax fraud. In August, Clyne admitted 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 sentence, which Chief U.S. District Court Judge Mary M. Lisi imposed in U.S. District Court Providence. Judge Lisi also ordered Clyne, 65, of Providence, to repay RISD $981,794, and to forfeit any ownership interest in property that he purchased in Ballinamore, Ireland with proceeds of the fraud scheme.
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 in August, 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. Over eight years, the fraudulent invoices totaled $981, 794. Ankh Electric did not provide the services described in the invoices.
Clyne admitted filing a false income tax return for 2003, conceding a total tax loss to the government of $162,743 between 2001 and 2005. As a condition of supervised release when he finishes his prison term, Clyne must file accurate income tax returns and pay all due taxes, plus interest and penalties.
Judge Lisi ordered Clyne to report to prison on December 27 and recommended that the Bureau of Prisons place him in a medical facility.
The U.S. Postal Inspection Service and the Internal Revenue Service, Criminal Investigation conducted the investigation.