Attorney General Peter F. Kilmartin announced that Khaled Gabr (age 46), with a last known address of 52 Columbus Avenue, Pawtucket, pleaded nolo contendere yesterday before Superior court Justice William E. Carnes, Jr., to misappropriation of funds over $1,000 and attempting to obtain money under false pretenses.
Under the terms of the plea agreement, Gabr was sentenced to a total of 20 years with three years to serve and the remainder suspended with probation. In addition, Gabr was ordered to pay restitution in the amount of one million dollars by the end of his 20 year sentence. The Court stayed the execution of the sentence until January 25, 2016.
Had the case proceeded to trial, the State was prepared to prove that between 2006 and 2008 Gabr, a general contractor, misappropriated approximately one million dollars from George Blacksmith, who invested in Gabr's project to rehabilitate a mixed commercial and residential property on Harrison Street in Pawtucket.
In 2008, Mr. Blacksmith began to tire of excuses offered by Gabr as to why the rehabilitation was not completed as projected, as well requests for additional large sums of money to complete the project. Eventually, Gabr offered to transfer the property, free and clear of any liens, to Mr. Blacksmith in exchange for an additional $170,000 to extinguish any debt he owed. At the closing, Gabr presented a discharge of mortgage from the lender, which was later determined to be a forgery. It was also discovered there was more than one million dollars in liens against the property.
Mr. Blacksmith filed a complaint with the Rhode Island State Police in August 2008.
"George Blacksmith immigrated to his country as a young man, started a small business, and saved and invested his money to make a life for himself and his family. His is truly a story of the American dream. That dream was shattered, however, when he trusted a flim-flam contractor who stole his hard-earned money in the name of greed," said Attorney General Kilmartin.
Detective Gerard Ratigan of the Rhode Island State Police Financial Crimes Unit led the investigation and Special Assistant Attorney General Ryan Stys prosecuted the case on behalf of the Office of Attorney General.