A review by Rhode Island Attorney General Peter Neronha has found insufficient evidence to show that state DMV Administrator Walter “Bud” Craddock should have known about prostitution happening at a building he owns in Cranston. But the review also said that a series of details should have given Craddock pause about the situation.

Neronha pursued his review following a request by the Rhode Island State Police, which concluded in October 2021 that Craddock did not face any criminal liability for activities at his property at 1732 Broad St.

Three separate law enforcement actions took place in connection with the first floor unit between 2017 and 2021, one involving a drug investigation and the other two suspected prostitution. In separate cases, women were charged with practicing massage without a license.

According to a seven-page memo released by Neronha’s office on Monday, there was “ample smoke” on the question of whether Craddock knew about commercial sexual activity taking place in the building prior to the execution of a search warrant in 2021.

“Applying, however, the ‘beyond a reasonable doubt’ standard to these facts, which we as prosecutors must, there is insufficient evidence to establish fire. That Mr.Craddock ‘should have known’ or ‘must have known’ that commercial sex activity was going on at his 1732 Broad Street property is not the standard that this Office must meet,” the memo stated.

“Rather,” it continued, “we must prove beyond a reasonable doubt that he did know. And on the evidence presented to us by the Rhode Island State Police, that is not possible. There has been no record, witness, or electronic or other surveillance evidence produced that adequately establishes such knowledge beyond a reasonable doubt.”

The red flags cited by Neronha include the absence of a registered business at the first floor of the address in question, the absence of signage for the purported business, and how garbage bags were taped over windows.

Craddock is a former police chief in Cranston and he’s married to Lynne Urbani, director of policy in the Rhode Island House of Representatives. Craddock was appointed as DMV administrator in 2015 by then-Gov. Gina Raimondo.

In a statement, the state GOP said it is time for Craddock to go: “Although there may not be enough evidence to charge Craddock with a crime, there is certainly enough evidence to show that Craddock had bad judgment and should be fired from his job. Either Craddock knew there was illegal activity going on his property or he should have known there was.”

Matt Sheaff, a spokesman for Gov. Dan McKee, responded via statement, “In June 2021, the governor requested the investigation into Administrator Craddock. Since that time, two highly respected organizations, the Rhode Island State Police and the Attorney General’s office, have done a thorough review of the matter and concluded there was no criminal activity or evidence of wrongdoing against Craddock. This matter will now be referred to the state’s HR department.”

Ian Donnis can be reached at idonnis@ripr.org. Follow him on Twitter @IanDon. Sign up here for his free weekly RI politics newsletter.

One of the state’s top political reporters, Ian Donnis joined The Public’s Radio in 2009. Ian has reported on Rhode Island politics since 1999, arriving in the state just two weeks before the FBI...