Scope and Contents:
In order to recoup some of RISDIC
's financial losses and to compensate depositors, DEPCO became involved in numerous legal cases, either as a complainant or as a defendant. Some of these cases involved the pursuit of parties who had outstanding loans with the failed institutions, others related to the legal and audit representations of the financial conditions of the failed institutions. Among the most prominent cases were DEPCO vs. Ernst and Young, DEPCO vs.Joseph Mollicone, DEPCO vs. Mapleroot, and DEPCO vs. Adler, Pollock, and Sheehan. In February, 1992, for example, DEPCO filed a complaint against Ernst and Young in Rhode Island Superior Court, charging them with negligence, negligent misrepresentation, and breach of contract ("DEPCO state action"). The DEPCO complaint sought damages which allegedly resulted from the failure of E&Y to properly audit and report the financial condition of the failed institutions. Court actions involving DEPCO continued for many years after it was dissolved in 2003.