Former Cranston State Rep. Peter Palumbo pleaded not guilty Thursday to charges to embezzlement and filing a false document.
The arraignment in Providence District Court lasted about a minute. Wearing a white sweatshirt and jeans, Palumbo was led into the courtroom in handcuffs.
Palumbo, a Democrat, was arrested by State Police earlier in the day at his Cranston home.
According to State Police, an investigation into Palumbo’s campaign finances found he allegedly embezzled nearly $60,000 from his political war chest. He was released on $5,000 personal recognizance. He’s due back in court on April 12.
Neither Palumbo nor his lawyer, former state representative Peter Petrarca, commented after the arraignment. Petrarca also represented former Providence Representative John Carnevale, who was charged last week on three counts of perjury.
In a news release, State Police said the investigation was sparked by a state Board of Elections’ audit into Palumbo’s campaign finances.
“The Board of Elections audit revealed that Mr. Palumbo was not accounting for approximately $59,000 in cash withdrawals from the campaign funds,” the release said. “A further review revealed that Mr. Palumbo withdrew approximately $16,000 from ATMs at seven different casinos around the country over the course of five years.”
The investigation was done by members of the State Police Financial Crimes Unit, with assistance from the attorney general’s office.
Palumbo was first elected in 1994. He was defeated in 2014 by Cranston Republican Robert Lancia.
