Tuesday, August 9, 2011

A Cozy Relationship in Now-Bankrupt Central Falls Rhode Island

List of Central Falls’ 20 largest creditors is released. (Providence Journal, 8/3/2011)

Excerpt: Intercity Maintenance & Restoration Inc., of Providence, topped the list of the 20 largest creditors who want to be paid by the city as soon as possible. The filing, in U.S. Bankruptcy Court, does not provide specifics about Intercity’s work, but the firm and its president, Michael G. Bouthillette, have a controversial history in the state’s poorest and smallest city.

Bouthillette and two of his companies, Intercity Maintenance and Certified Disaster Restoration Corp., were awarded a no-bid contract to board up more than 200 abandoned properties in the city in 2008 and 2009. Bouthillette collected about $1.5 million. A Journal investigation last year concluded that Bouthillette was in line to collect another $400,000 to $500,000 on remaining liens that were filed with the city.

He was paid after the boarded-up properties were sold.

Bouthillette was childhood friends with embattled Central Falls Mayor Charles D. Moreau, and he contributed more than $2,000 to his political campaigns between 2005 and 2009.

Certified Disaster also charged the city’s public library, Adams Library, $32,560 to remedy a moisture problem in the building’s basement. The library board never authorized the work and its members refused to pay the bill.

In the winter of 2010, the state police and FBI launched a criminal investigation into Moreau, Bouthillette and the no-bid board-up program. So far, a number of city employees have provided testimony to a federal grand jury, but no one has been charged with any crimes

Related posts:
Central Falls facing bankruptcy.  (7/10/2011)
Central Falls may reopen its library in the fall.  (7/6/2011)
Central Falls Rhode Island closes its public library.  (7/6/2011)

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