Former Providence Plan Finance Director Pleads Guilty to Embezzling More Than $740,000

EAST PROVIDENCE, RI — Charles F. Denno, 66, of East Providence, a former finance director for the Providence Plan, pleaded guilty in federal court today to fraud, the U.S. Attorney's Office said. Denno admitted to the court that "he devised and executed a scheme in which he fraudulently converted $742,190.69 of Providence Plan funds for his own use."

The Providence Plan is a non-profit educational entity which receives federal, state and private grant funds, including funds from the United States Department of Education and the Bloomberg Family Foundation. These grant funds are to be used to support educational and other programs for adults and children in Rhode Island. Annually, the federal grant funds awarded to the Providence Plan totaled in excess of four million dollars.

According to the U.S. Attorney, Denno admitted "that from November 2012 through July 2016, that he used his authority to cause the U.S. Department of Education and the Bloomberg Family foundation to deposit funds into Providence Plan bank accounts, and then fraudulently converted funds to his own accounts and personal use. Denno admitted to the court that he fraudulently prepared and issued Providence Plan checks made payable to CMG Enterprises, an entity he owned. The payments issued to CMG and deposited into a CMG bank account were not authorized and contained a forgery of the authorized check signing official at the Providence Plan. Denno subsequently made multiple withdrawals from the CMG bank account in various forms, including credit card payments, check payments and ATM cash withdrawals at Twin River Casino."

He will be back in court for sentencing on June 23. He could face up to 20 years in prison, plus three years' probation and a $250,000 fine.

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