Former Cranston State Rep And E. Providence Mayor Charged In Scam

PROVIDENCE, RI — State Police have charged three men including a former Cranston state representative and a former East Providence mayor with collecting more than $150,000 in illegal fees from 31 customers at the former Douglas Auto Sales car dealership.

Anthony Pate, 71, of Cranston who owned the dealership, was arrested along with two employees, former State Rep. Thomas Palangio, 56, of Cranston, and Former East Providence Mayor Bruce Rogers, 64, of East Providence.

State Police said Douglas Auto Sales presented false statements and documents to obtain a dealers' license. Police then looked into a dealership program called "Buy Here, Pay Here," which allowed customers with poor credit to buy vehicles with special financing.

Under the program, customers would pay the dealership an agreed-upon amount of money each week until the vehicle was paid off. But police said the suspects scammed customers by charging fees they were not allowed to collect.

Police said those fees included:

• A warranty fee for a warranty that was already included in the cost of the vehicle
• An "insurance cap fee," which they were not allowed to charge because they do not have a license to sell auto insurance
• Overcharging customers for a document preparation fee, which covered the cost of preparing vehicle sales and registration documents.

The State Police investigation started after noncriminal investigations from the Division of Motor Vehicles (DMV) dealership office and the Motor Vehicle Dealers License and Hearing Board. The hearing board fined the dealership $518,000 and revoked its license on July 11, 2018.

The investigation was turned over to police after the regulatory agencies said Douglas Auto Sales violated several rules and regulations governing motor vehicle dealerships.

Anyone who purchased a car within the past three years from Douglas Auto Sales in Providence using the "Buy Here, Pay Here" program is asked to contact Supervisor Kevin Rabbitt or Investigator Anne Mancini at the DMV's License and Regulations Office at (401) 462-5746.

Image via Rhode Island State Police