Fourth Defendant Sentenced in North Providence Insurance Fraud Scheme

PROVIDENCE, RI—An unlicensed Johnston insurance adjuster who pled guilty to participating in a scheme with three others to bilk an insurance company out of nearly $50,000 following the historic March 2010 floods was sentenced today to three years of probation, the first six months to be served in community confinement at the Coolidge House in Boston, followed by six months of home confinement. Vincent O. DiPaolo, 62, owner of VDP United Consultants, Inc., was also ordered by Chief U.S. District Court Judge Mary M. Lisi to make restitution in the amount of $40,012.68 and pay a fine of $10,000.

DiPaolo pled guilty in August 2011 to four counts of mail fraud and one count of conspiracy as charged in a federal grand jury indictment returned in November 2010. The insurance fraud scheme by DiPaolo and three others was uncovered by the FBI during a lengthy probe into public corruption in North Providence.

DiPaolo’s sentence was announced by U.S. Attorney Peter F. Neronha and Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office.

At the time of his guilty plea, DiPaolo admitted that he and former North Providence Town Councilman John A. Zambarano, a residential contractor and owner of Zam’s Carpeting, Inc.; Robert A. Ricci, a former hearing officer for the Rhode Island Contractor’s Registration and Licensing Board, and a residential contractor and owner of R.A.R. Building and Home Improvements LLC; and Lori A. Sergiacomi, a/k/a Tanya Cruise, an on-air Providence radio personality, conspired to devise a scheme in which an insurance claim would be filed to repair uninsured flood damage to Sergiacomi’s home which was caused by the historic floods. DiPaolo admitted that they intentionally caused damage to the roof and interior of Sergiacomi’s home and in-ground swimming pool, and then attributed the damages and previous flood damage to a fictitious wind and rain storm in April 2010. Sergiacomi’s insurance claim for nearly $50,000 also included money to be used for home improvement projects.

DiPaolo, whose insurance adjuster’s license was revoked by the Rhode Island Department of Business Regulation in December 2007, admitted that while acting as Sergiacomi’s representative he lied to an insurance adjuster who represented Sergiacomi’s insurance company about the damages and the cost of repairs to Sergiacomi’s property.

John Zambarano pled guilty in March 2011 to political corruption and insurance fraud charges, and was sentenced in May to 71 months in federal prison. Robert Ricci was sentenced to two years of probation, the first four months to be served in home confinement; 200 hours community service; restitution in the amount of $1,000; and a fine of $1,000 for his role in the insurance fraud scheme. Lori Sergiacomi was sentenced to three years of probation, the first four months to be served in community confinement at the McGrath House in Boston, followed by four months of home confinement; 200 hours community service; restitution in the amount of $40,012.68; and a fine of $2,000.

The cases were prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams.