"Operation Deception" cop bankrupt

PROVIDENCE, R.I. (WPRI) - One of the key players implicated in "Operation Deception, " filed for bankruptcy last year, according to federal court filings obtained by The Target 12 Investigators.

Providence Police narcotics detective Joseph Colanduono is mired in hundreds of thousands in debt. Shedding light on a possible motivation for his alleged role in what the Rhode Island State Police say was a lucrative cocaine operation.

• See a timeline of Operation Deception investigation

State police say the drug ring was run by co-defendant Albert Hamlin. Investigators say Colanduono helped in the operation of the alleged drug ring.

He was charged with four counts of conspiracy to deliver a controlled substance and one of count of larceny over 500 dollars. Colanduono was arrested along with two other Providence Police officers in a state police drug dragnet dubbed "Operation Deception."

Court filings show Colanduono and his wife have 21 credit cards with a balance totaling more than $138,000. Tacking on a second mortgage and other debts, Colanduono fell behind to the tune of $421,000.

The court ordered Colanduono's Providence Police salary be garnished $440 a pay period to pay back some debt.

Colanduono was a top wage-earner at the department, public records show he took home more than $128,000 in 2008 and $103,000 in 2009, including overtime.

"That's a lot of debt for anyone to handle regardless to income," said consumer attorney Christopher Lefebvre, who analyzed the filing at the request of Target 12. "In this particular case it’s obvious these people needed help in bankruptcy protection."

A spokesperson for Attorney General Patrick Lynch declined to say how much Colanduono may have profited from the alleged drug ring. But court documents accuse him of taking in money.

In a March 2, 2010 wiretapped phone conversation, state police say Colanduono had a stake in accused drug dealer Albert Hamlin's operation. This is a portion of a phone call between fellow co-defendant and Providence police Sergeant Stephen Gonsalves and Colanduono:

Gonsalves: How much loot you bringing with you tonight?

Colanduono: (laughter) I ain't got much.

Gonsalves: Alright I'll have two hundred, that should be enough.

Colanduono: Ah, alright, cause he owes me a hundred bucks, actually he owes me one-twenty actually.

In addition to the drug operation, State Police Detective Commander Captain David Neill said they were keeping Colanduono under surveillance when they watched him steal someone else's cash.

"Mr. Colanduono learning that there was a sum of money in a vehicle that was unattended, responded to that vehicle withdrew the money and went back to the police department," said Neill.

Investigators declined to say how much money was taken or who the car belonged to. But police did charge Colanduono with larceny over 500 dollars for the act.

With a large salary, potential profits from an alleged drug ring and credit card debt, it's unclear where all the money was going.

But attorney Lefebvre said Colanduono's arrest will have a devastating affect on the bankruptcy case.

"With Chapter 13 cases its fundamental principal that you have to be a wage earner," Lefebvre said. "If someone loses their job, these cases tank, which could mean that these people could lose their house."

Colanduono was suspended without pay pending the outcome of the criminal investigation. If convicted of a crime, Colanduono, who has more than 21 years on the job, stands to lose his pension.

Calls to his attorney have not been returned.

twhite@wpri.com