Ex-employee bilked school of $1m
PROVIDENCE -- A former employee of the Rhode Island School of Design pleaded guilty yesterday to bilking the school out of nearly $1 million by submitting phony invoices for fire-safety work that was never done.
Patrick Clyne, 65, pleaded guilty in US District Court to charges of mail fraud and filing a false tax return. He is free on bond pending sentencing, set for Nov. 2.
Rhode Island School of Design is one of the nation's premier art and design schools. Clyne was responsible for the upkeep of fire-safety equipment -- such as fire alarms, extinguishers and emergency lighting -- and had the authority to request and approve work and hire outside contractors.
From 1997 to 2005, Clyne billed the school for fire-safety work purportedly done by Ankh Electric, a shell company he created, prosecutors said.
Clyne approved nearly $982,000 in fraudulent invoices for the company and forwarded the bills for payment to the school's purchasing department. Clyne never revealed to anyone at the school his connection to the company.
Clyne and his wife, Ibtisama Bradley, were indicted earlier this year on conspiracy and 10 counts of mail fraud. The couple, who had been living in Ireland, surrendered to federal authorities in May and were arrested at Logan International Airport in Boston.
Federal prosecutors agreed to dismiss all charges against Bradley and permitted Clyne to plead guilty to just two counts. He faces up to 23 years in prison, but prosecutors say they will recommend a reduced sentence.
Clyne also admitted failing to report on his 2003 federal income tax return more than $180,000 that his company received from the school. He has agreed to forfeit ownership of a property in Ireland that prosecutors say he and his wife brought with proceeds from the scheme.
Clyne's lawyer, Scott P. Lopez, did not comment as he left the courthouse.
School officials have said they reviewed the areas Clyne was responsible for and found no significant safety issues arising from the fraudulent billing scheme.
