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Fleet Agrees to Settlement
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Business New Haven
1/8/2001
By: BNH
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PROVIDENCE, R.I. - Fleet Financial Group (NYSE: FBF) has agreed to pay $15.5 million to settle a claim that it deceived banking regulators. In a civil suit the Depositors Economic Protection Corp. claimed that Fleet contributed to Rhode Island's 1991 banking crisis when it propped up Joseph Mollicone Jr.'s Heritage Loan & Investment Co. by drafting a sham $3.5 million loan to make Heritage appear solvent. Mollicone eventually was convicted of embezzling $12 million from Heritage depositors, precipitating the Ocean State banking crisis. Mollicone is presently serving a 30-year sentence. Under the proposed deal, which was scheduled to be ruled on in R.I. Superior Court on January 2 (after BNH went to press), Fleet admits no wrongdoing.
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