Retired Clerk Arruda Arrested for Fraud

Municipal Court clerk accused of embezzling $389,000.

The Rhode Island State Police arrested Rachel Arruda on embezzlement charges yesterday, a retired Municipal Court clerk accused stealing approximately $389,000 between 2004 and 2010. Arruda retired from the City employment in August of 2010 and was the chairwoman of this year's Autmnfest parade.

A press release from the mayor's office said that the State Police investigation was initiated at the request of the City of Woonsocket and its auditors.  

This is the second individual charged as a result of the management and financial controls put in place by the current administration.   Earlier this year, , a clerk in the City Treasury department was arrested by Woonsocket Police for Unlawful Appropriation (over $1,000) and Computer Access for Fraudulent Purposes.  It is alleged that she stole over $7,000 through fraudulent transactions going back to at least early 2009.

“The State Police have handled this matter with the utmost of professionalism and we are grateful for their efforts,” said Mayor Leo Fontaine, also giving credit to finance department staff for their efforts.

“We cannot and will not stand for corruption in any form, period," said Fontaine.  "I came into office promising open and honest government, and that is what we will continue to do.  During these very difficult times, the people of our city deserve no less.”  

Both Fontaine and Bruce gave credit to City Auditors, Braver PC for their assistance in this matter. 

“Braver has been invaluable in our combined efforts to refine our financial and management operations,” Bruce said. Although the finance director said yesterday that the embezzlement had gone undetected by auditors for years, he also noted that the city was working with different auditors during many of the years of Arruda's employment.   

CB11 October 14, 2011 at 02:39 PM
If only she had trained her replacement to skim a little off of what they took in, she would have never been caught! Darn trainees!
cindy smith October 14, 2011 at 03:36 PM
personally, I cant wait till she returns home to laugh at her. She always thought she was so high and mighty in our neighborhood. It was funny watching who channel 12 interviewed, never seen those neighbors before in the 5 years i have lived there! Simply amazing ..
Tony Perry October 14, 2011 at 04:43 PM
she should go to jail
ok pal October 15, 2011 at 01:36 AM
ha you people are like old women with your gossip. speculating over petty details. what i would love to know is HOW she took the money, and where it went, it obviously wasn't filed on her taxes. furthermore, if you think all it took was 400k to bring this city to its current level of decrepitude and filth, then you people need to come up for air once in a while. the big picture shouldnt be getting out of debt, because its going to take MILLIONS more than that to improve this dump. even if we were to balance the books, the damage has already been done, the overall lack of intelligence, lack of money, lack of morals, lack of commerce, lack of cleanliness, lack of caring, lack of hope, lack of faith, lack of class is overwhelming and cannot be undone overnight. the good news is, there is hope in this fair city, but we have a long way to go. the longer you people dwell on gossip and finger pointing, the steeper the slope in this constant uphill battle. go to church. read a book. do something constructive.
Jerry October 15, 2011 at 02:37 AM
If you read the valley breeze online, someone had interviewed Rachel a few days before she retired and Rachel stated that she felt bad for people that couldn't afford to pay their fines in this bad economy. So Rachel stated that "the law is the law, and everyone must obey it". So, I guess she fooled everyone. My, my, everyone should bring their kids to her house for halloween, she's probably going to give out "payday" bars....
cindy smith October 15, 2011 at 01:27 PM
Ok PAL, this is how she did it.. she collected the fines and put it in her pocket.. lol. I dont think she will be giving out any candy come halloween, her shades are down and the house is dark most of the time as she is just hiding in there coming out only occassionally. my question is.. how can she show her face anywhere at this point. she should hide away in shame.
media censorship October 16, 2011 at 01:38 AM
How odd that comments, ie; the right of freedom of speech, is abused and even policed by, "the media". Interesting...
Yvette M Ayotte October 16, 2011 at 10:51 AM
That's true ok pal, we need to help this city by doing and thinking constructively.
la_mouffette October 17, 2011 at 08:46 PM
Jerry October 20, 2011 at 03:40 AM
The next time the City needs to borrow money, maybe they should take a loan from Rachel, since it's the City's money anyway, or maybe she could of bought Roland Michaud's land for the new water plant and then donate it back to the city......this whole thing is unbelievable....
Uncle Ben October 20, 2011 at 05:08 AM
She stole 389,000 and the City is spending 390,000 she is 1,000 shy. weird ha ?
Goody Judy October 25, 2011 at 10:25 PM
Tony Perry, You and your whole family has been to jail so who are you to talk and Cindy Smith, you sound like a stalker!!!!!
cindy smith October 25, 2011 at 10:40 PM
Goody Judy.. I am far from a stalker but I do live in her HOOD.. lol.. so we have had to put up with her, the news people being here, and just general people who are pissed and drive by beeping to show they know where she lives.. Sounds like your a little angry and might be friends.. perhaps even a city worker double dippin like good ol Rachel!
Goody Judy October 25, 2011 at 10:58 PM
WOW Cindy, you really don't have a life!!!!!!! Where do you live so I can drive by and beep to you? GROW UP;)
cindy smith October 25, 2011 at 11:27 PM
So judy.... are you all for Rachel ??? Funny how more than I or Tony Perry commented on her .. and if you think the patch is bad.. please do visit the woonsocket call or the pro jo.. or turn to ten, wpri.. etc.. Why don't you get a life and defend some one worth defending!
Goody Judy October 25, 2011 at 11:32 PM
And that wouldn't be you cause I don't see a halo above your head!!! I'm done...get a life
cindy smith October 25, 2011 at 11:37 PM
you need to grow up who ever you might be... i never said there was a halo.. some one STEALS 389,000 dollars.. atleast because they can not account for before 2004.. and you defend her because we have spoken our mind.. why dont you grow up.. I did not start this.. you did by calling tony and I out of over a dozen comments here.. nuff said!
Goody Judy October 25, 2011 at 11:56 PM
Oh, did I hit a nerve now??? Damn right u don't have a halo!!!Bet u don't speak out about child molesters and murderers like you're doing about this!!!! Okay, I'm really done now, wasted enough of my time! By the way, ENOUGH said, not nuff....
cindy smith October 26, 2011 at 12:24 AM
you dont even know me to say if i do or dont have a halo.. lol.. I certainly would speak out about molesters and murderers.. wouldnt you? Maybe if you lived in her neighborhood and had to live with some of her holier than thou actions of reporting neighbors for what she thinks is the LAW.. while shes scoffing money from the court and making statements about the law being the law! like i said.. Nuff said.. go to bed old lady!
English first October 26, 2011 at 01:00 AM
Dear Cindy and Judy, In case you didn't know that is why they have courts. Courts determine if someone is guilty or not guilty. It is not to be decided on the Woonsocket Patch. Opinions are one thing but accusations, name calling and insults are not necessary. She "looks" guilt given the few facts we hear. But time will tell. Enough said.
Goody Judy October 26, 2011 at 01:10 AM
And you don't know me to say I'm an old lady...lmfao....goes to show that people say things they know NUFFIN about.......done!!!
John Larrabee October 26, 2011 at 03:03 AM
There is a difference between censorship and responsible speech. Do you expect to see pornography on network TV? Of course not. The same principle applies to vulgar or libelous statements in print.
John Larrabee October 26, 2011 at 03:08 AM
The last literate generation is now over 40, so if you're logging on to Patch, that means you're old. Welcome to the AARP.
English first October 26, 2011 at 11:03 AM
correction She "looks" guilty.
Fina October 26, 2011 at 02:55 PM
John, not that this really has anything to do with the original article but I can assure you that not everyone who posts on Patch is over 40. That's throwing the baby out with the bathwater, don't you think? I will concede the point, however, that what passes for literacy and a coherent grasp of the English language today is often what I would consider to be substandard.
cindy smith October 27, 2011 at 01:43 PM
Here is some information on the continuing Rachel vs missing money saga.. seems all employees are bonded, so she wont even be paying back the city.. the insurance company that bonds will. I hope the insurance company seeks recovery from here.. What message does this send out to city workers? go ahead and steal, when we find out we will just get it back from the insurance company ! http://breezepapers.com/2011/10/26/nsbw/city-makes-plans-to-recover-embezzled-sum
John Larrabee October 27, 2011 at 01:52 PM
If Ms. Arruda is convicted, most likely her sentence will include restitution, If by that time an insurance company has covered the city's loss, the restitution payments would then go to the insurer.
cindy smith January 13, 2012 at 01:09 PM
Well, after what I learned this morning, Rachel will not have any liens put on her home as it is covered under the Homestead act according to the real and tangible tax list. So. from what i understand, no liens can be placed on the property, and the property is protected from creditors. Plus she pays a reduced tax rate! wtf.. some people just have it all figured out.. yup shes a really nice lady!
Noel D. E. Dandy March 16, 2012 at 06:58 PM
Those who falsely imprision will become prisoners themselves . King David (THE KORAN) You koran but u can't hide . (can RUN)
The Chorus March 16, 2012 at 10:39 PM
You reap what you sow.


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