State Police reviewing 'preliminary findings' of fraud study

PROVIDENCE, R.I. (WPRI) – State Police Superintendent Col. Steven O’Donnell on Tuesday said he has reviewed “preliminary findings” from a waste and fraud study and plans to request more information from the federal government to help investigate potential abuse of Medicaid and food stamps in Rhode Island.

O’Donnell said he is still waiting to receive a more complete copy of the waste and fraud review, which was conducted by Moderate Party chairman Ken Block beginning in 2011. Both O’Donnell and the governor’s office stressed that Block’s findings do not delve into specifics and that further review is needed before any investigation is launched.

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“From what I know from the preliminary report, I can't say that it's widespread because you don't have access to the information that will tell you it's widespread. So we're waiting on that,” O’Donnell said. “The small actual items that we’ve already worked on and have been working on isn't widespread.”

O’Donnell said he was made aware of Block’s review in January and has met with both U.S. Attorney Peter Neronha and Attorney General Peter Kilmartin to discuss the findings. He said state police have already acted on some of the information provided by Block, but declined to elaborate.

A spokesman for Nerohna confirmed that the U.S. Attorney’s office met with Block last September and again in December, but said the department hasn’t launched an investigation.

Gov. Lincoln Chafee has come under fire for refusing to release Block’s findings to the public, but O’Donnell said doing so could negatively impact any potential criminal probe. He said most of the information needed to pursue an investigation would come through warrants, grand jury or memorandums of understanding with the federal government.

“From our perspective, once we initiate an investigation, it’s not a public record,” O’Donnell said.

O’Donnell’s comments came two weeks after a WPRI.com investigation found that thousands of dollars in cash assistance were withdrawn from ATMs in liquor stores, bars, smoke shops and Twin River casino in Dec. 2012.

Dan McGowan ( dmcgowan@wpri.com ) covers politics and the city of Providence for WPRI.com. Follow him on Twitter: @danmcgowan