Former Cranston State Rep. Peter Palumbo Faces Embezzlement Charge

CRANSTON, RI—Peter Palumbo, 54, of Cranston, a former member of the State House of Representatives, was arrested for embezzling money from his campaign finance fund, state police said Thursday.

"This investigation by members of the Financial Crimes Unit, with the assistance of the Rhode Island Attorney General’s Office, was initiated as a result of an audit conducted by the Board of Elections into the campaign finances of former State of Rhode Island Representative Peter Palumbo, District 16, in the City of Cranston. The Board of Elections audit revealed that Mr. Palumbo was not accounting for approximately $59,000 in cash withdrawals from the campaign funds. A further review revealed that Mr. Palumbo withdrew approximately $16,000 from ATMs at seven different casinos around the country over the course of five years."

Mr. Palumbo was arrested this morning on an Affidavit/ Arrest Warrant for Embezzlement and Filing a False Document with a Public Official. After processing at State Police Headquarters, Mr. Palumbo will be transported and arraigned at Sixth Division District Court, One Dorrance Plaza, Providence, RI.