RI lawmaker to plead guilty to fraud

PROVIDENCE, R.I. (WPRI) - Nearly a year after the FBI raided his Providence office, Rhode Island's deputy House speaker is going to plead guilty to federal fraud charges.

U.S. Attorney Peter Neronha announced Friday morning that Rep. John J. McCauley, Jr. and his business partner, William L'Europa, have agreed to plead guilty to conspiracy and tax fraud for cheating the federal government out of more than $500,000 in tax payments.

Prosecutors said the defendants - who own McCauley & L'Europa Public Insurance Adjusters - underreported nearly $1.8 million in receipts for tax years 2007 to 2010.

Last November, federal investigators spent a Wednesday afternoon bringing out boxes from the Providence office during a raid.

McCauley, 54, is a sitting state representative. The Providence Democrat is part of House leadership as deputy speaker and is also a member of the powerful House Finance Committee.

McCauley was first elected in November 1990 and is now serving his 11th consecutive two-year term in the Rhode Island House. He opted to retire this year rather than seek re-election.

In a statement, House Speaker Gordon Fox said McCauley has apparently "taken responsibility in addressing his personal issues" by agreeing to the plea deal.

"The charges which he accepted had nothing to do with his role at the State House," Fox said. "He has been a longtime friend who always represented his district well."