Central Falls to hold election after former mayor stung by fraud – chicagotribune.com

Dec 10 (Reuters) – Residents of formerly bankrupt Central
Falls, Rhode Island, will elect a new mayor on Tuesday after
former mayor Charles Moreau pleaded guilty to corruption
charges.
The election pits front runner James Diossa, a 28-year-old
who has been a city councilman since 2010, against former police
Chief Joseph Moran. The winner will serve out the remainder of
Moreau’s term.
Diossa won 59 percent of the vote in a special primary
election on Nov. 6, with Moran coming in second among five
contenders, with 18 percent of the vote.
A judge approved the impoverished city’s bankruptcy plan in
early September, setting the stage for it to emerge with a
budget balanced by slashing pensions, hiking taxes, revising
labor contracts and cutting employees.
The case garnered attention for its treatment of the city’s
bondholders, who emerged unscathed. The city went bankrupt
because of steep cuts in state aid, revenue shortfalls and an
unfunded liability of about $80 million for pension and retiree
health benefits.
Later in September, Moreau resigned and agreed to plead
guilty to a federal fraud charge for allegedly taking gifts from
his long-time friend and political supporter Michael
Bouthillette in exchange for contracts to board up foreclosed
houses.
Moreau is scheduled to be sentenced on Feb. 12.
As part of the approved bankruptcy plan, city officials must
enact a budget plan devised by the state receiver for the next
several years.

via Central Falls to hold election after former mayor stung by fraud – chicagotribune.com.

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