A Rhode Island mortgage broker has been sentenced to more than four years in federal prison for running a Ponzi scheme that resulted in millions of dollars in losses, fraudulently obtaining over $160,000 in COVID-19-related Small Business Administration loans, and failing to pay over $140,000 to the Internal Revenue Service. Acting United States Attorney Sara Miron Bloom announced the sentencing of Joseph Giuttari, who has been ordered by U.S. District Court Judge Melissa R. DuBose to 55 months of incarceration followed by three years of supervised release.
Giuttari, who managed Hybrid Capital Group, LLC, THE FENS CO., LLC, and Realty Funding Advisors, LLC, was also fined $20,000 and is required to pay restitution of $4,579,130.95 to his victims, the SBA loan programs, and the IRS.
On October 31, 2024, Giuttari pled guilty to wire fraud, theft of government property, and filing a false tax return. The guilty plea was followed by a violation of his release conditions when he engaged in brokerage activities, leading to his remand into custody pending sentencing.
According to court documents, Giuttari's scheme involved posing as an intermediary between borrowers seeking short-term loans and private lenders. He allegedly directed funds to himself through various business entities rather than forwarding them to borrowers, misusing these funds for personal expenses or to resolve earlier debts with investors demanding returns.
Further violations included Giuttari's fraudulent acquisition of $167,800 in Economic Injury Disaster Loans meant for COVID-19 relief. Additionally, he falsely reported a total income of $22,176 on his 2019 tax return when it was actually over $541,000, resulting in an unpaid tax obligation of $140,102.
Assistant United States Attorney Sandra R. Hebert prosecuted the case, which was investigated by the Federal Bureau of Investigation, the IRS Criminal Investigation unit, and the Federal Deposit Insurance Corporation's Office of Inspector General.