News Release
U.S. Department of Justice
United States Attorney
District of Rhode Island
December 1, 2008
Woonsocket man pleads guilty in three-state
check fraud scheme
Edward Marcelli, of Woonsocket, has pleaded guilty to orchestrating a check fraud scheme in which he and other individuals used bad checks at retail stores in Rhode Island, Connecticut, and Massachusetts to purchase more than $280,000 worth of merchandise. Three other defendants have pleaded guilty to their roles in the scheme.
United States Attorney Robert Clark Corrente announced the guilty plea, which Marcelli entered today before U.S. District Court Judge William E. Smith in U.S. District Court, Providence.
At the plea hearing, Assistant U.S. Attorney Andrew J. Reich said the government could prove that, in 2004, Marcelli devised a scheme in which he and others opened bank accounts with false address information and minimal deposits, and then purchased goods with worthless checks.
To carry out the scheme, Marcelli provided his collaborators with leases reflecting fake addresses, they obtained identification documents with the addresses reflected in the leases, opened bank accounts, typically with a deposit of $100 or less, and then bought merchandise with thousands of dollars in worthless checks.
Suneet Sharma, whose age and address were not available, Sterling Chapman, 47, of Augusta, Maine, and Michael Luchessi, 42, of Woonsocket, have pleaded guilty to participating in the fraud scheme. All are awaiting sentencing.
Marcelli admitted that, in June 2004, he drove with Sharma to a Connecticut Department of Motor Vehicles office so Sharma could obtain a Connecticut driver’s license, using a lease agreement that falsely represented that Sharma lived at an address in Connecticut. A few days later, Marcelli went with Sharma to a People’s Bank in Williamantic, Connecticut, and opened an account with a $100 deposit. They then went to retail stores in Massachusetts, Connecticut, and Rhode Island and purchased merchandise with 48 worthless checks totaling $80,256.
In September 2004, the scenario was repeated with Chapman, who obtained a Connecticut driver’s license, opened a bank account in Norwich, and then bought merchandise with 13 checks totaling $20,737. Those checks subsequently bounced.
The scam was repeated in November 2004, when Luchessi obtained a Massachusetts identification card with a fraudulent address, opened a bank account in Blackstone, and used 24 worthless checks totaling $42,508 to buy merchandise at various stores.
In April 2004, Marcelli obtained a Connecticut identification document in his name that reflected a false address, opened two bank accounts over the next few months, and used a total of 62 checks totaling $90,280 in purported value to buy merchandise.
Marcelli, 32, of Third Avenue, Woonsocket, pleaded guilty to conspiracy. The maximum penalty is five years in prison and a $250,000 fine. He is free on bond pending sentencing, which is scheduled for April 17.
Sharma, Chapman, and Luchessi have pleaded guilty to interstate travel to execute a fraudulent scheme. The maximum penalty is ten years imprisonment and a fine of $250,000 or twice the amount of gain or loss. They are also free on bond pending sentencing. In September,
a criminal complaint alleging fraud was filed against Marcelli’s wife, Paula Marcelli, but the charges against her have not been resolved. She is accused of floating $49,372 in worthless checks to buy merchandise.
The Federal Bureau of Investigation investigated the case.