PROVIDENCE, R.I., Oct. 3 (UPI) -- Rhode Island Gov. Donald Carcieri called on a state senator to give up a key committee chair after it was reported the lawmaker was under FBI investigation.
Sen. Stephen Alves, chairman of the Senate Finance Committee, is reportedly under scrutiny for allegedly killing a tax-incentive bill that would have benefited the city of Johnston after the mayor allegedly refused to invest money with the investment firm where Alves’ worked.
Carcieri said the allegations clouded efforts to attract jobs to Rhode Island.
The Providence Journal said Wednesday the FBI investigation was part of a large-scale inquiry into corruption allegations in Rhode Island called Operation Dollar Bill.
The Journal said Alves allegedly wanted Johnston Mayor Joseph Polisena to invest $29 million in city pension funds with his firm. When the mayor declined, Alves allegedly used his position to derail a bill that would have provided a sales-tax exemption to a trucking company that was considering opening a distribution center in Johnston.
