Cranston estate planner Caramadre fighting government effort to recoup $46 million

Sept. 28--PROVIDENCE, R.I. -- A Cranston estate planner convicted of masterminding a $46-million investment scheme exploiting terminally ill people is fighting the government's attempt to recover some of the money he's been ordered to pay back.

Joseph A. Caramadre, who's serving time in a federal prison in Massachusetts, appeared in U.S. District Court in Providence via video conference on Thursday. He was ordered in 2014 to pay $46 million in restitution to companies that lost money in the scheme.

The government said in a court filing last year that Caramadre had paid back less than $5,000 of that amount.

Caramadre says the government does not have the right to garnish several accounts in his name. Among the reasons he gave was that he is divorcing his wife and has been ordered to pay alimony.

His wife, Paula, this week filed a motion with the court to intervene in the government's effort to recover the $46 million in restitution he was ordered to pay by U.S. District Court Chief Judge William E. Smith. She argues through lawyer George West that her interests in the action will be "substantially impaired" if she is not allowed to weigh in on the case. Paula Caramadre, it says, has been awarded alimony and the right to seek child support, including retroactive child support. The divorce was finalized Sept. 12. The couple have three children.

Staff and wire reports

___

(c)2017 The Providence Journal (Providence, R.I.)

Visit The Providence Journal (Providence, R.I.) at www.projo.com

Distributed by Tribune Content Agency, LLC.