Administration Prepares to Announce Details in Second Case of City Hall Fraud

As Woonsocket's Director of Finance, Thomas Bruce has taken the job of improving efficiency at City Hall seriously, digging through records past and present in search of ever greater fiscal control.

Bruce expected to save Woonsocket money through small improvements, such as upgrading a double-entry computer system and increasing tracking for revenue.

And while he didn't necessarily expect to uncover multiple cases of large-scale, long-term fraud, his history working with computer systems and local government made it far from shocking to the finance director.

"I suspected there was a possibility because in accounting and cash collection, there are certain levels of financial controls that are needed to reduce the risk of fraud," said Bruce.

During the 1980s, Bruce worked with a software firm that serviced local governments and helped to install a system in Canton Township, PA which uncovered fraud, resulting in conviction of an employee. At the Bureau of Audits for the Rhode Island State Police Financial Crimes Unit between 1990 and 1993, he was involved in an investigation in which it was discovered that two employees were issuing professional licenses for cash. 

When Bruce returned to Woonsocket in 2009, he found that financial controls in city offices had actually been decreased in his absence, in part due to a new computer system which had been only partially installed. His investigation, with support from administration and the help of others in the financial department, began.

In September, the Woonsocket Police Department announced , a seven-year veteran of the City Treasury office accused of stealing up to $7,000 through transactions involving tax revenue and water bills. Bruce, and the case, remained intriguing at the time, with the finance director telling Patch that more information would be released soon. 

That information is expected to come out this week and while city officials have yet to formally announce details in the case, Bruce verified Wednesday that the dollar amount is "much larger than the last case."

He also verified that the case, which has been the subject of much recent city gossip, has been under investigation by the Rhode Island State Police and involves a retired City Hall employee, with evidence dating back to 2002. 

"Even though the state police have handled it in total, the Woonsocket Police Department has known about it for months as has everyone at City Hall," said Bruce. Mayor Leo Fontaine, who is coordinating efforts in the case with local officials, received a visit from the state police this afternoon.

"I was involved from day zero."

While Giguere's arrest was credited to hard work by several members of the current administration, the typically humble finance director admitted that the newest discovery is the result of his management review - and significant in scope.

"It was my work that identified the problem. This wasn't a problem that the auditors identified, but then, it has been a problem for eight or nine years," he said. "So one might ask, why didn't auditors know about it?"

In light of the upcoming news, Bruce assures residents that the new Phoenix Accounting System now used throughout the building, prevents the fragmentation of records that once allowed such criminal activity to slide under the radar. 

"The concern of the city is to use the judicial process to recover funds that were lost," he said.

"The employees that are here in the finance office were very professional and confidential and made it a team effort," Bruce said. "It's difficult for them because they're going through a period of disappointment with a coworker."

Further details on this case will be reported as the information becomes available later in the week.