Giuttari, Who Committed CARES Act & Tax Fraud, Sentenced to Prison

Giuttari, Who Committed CARES Act & Tax Fraud, Sentenced to Prison

A Rhode Island mortgage broker who ran a Ponzi scheme with investors’ monies causing millions of dollars in losses, who fraudulently obtained more than $160,000 in COVID-19 pandemic-related SBA loans, and who failed to pay more than $140,000 in taxes due the IRS was sentenced Thursday to more than four years in federal prison.

He was also ordered to pay restitution to his victims, announced Acting United States Attorney Sara Miron Bloom.

 

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About Sentencing

According to the U.S. Attorney's office, Joseph Giuttari, owner and operator of Hybrid Capital Group, LLC, THE FENS CO., LLC, and Realty Funding Advisors, LLC, was sentenced by U.S. District Court Judge Melissa R. DuBose to 55 months of incarceration to be followed by three years of supervised release. 

Additionally, Giuttari was ordered to pay a fine of $20,000 and to pay restitution to victims of his Ponzi scheme, to SBA loan programs, and to the IRS totaling $4,579,130.95.

Giuttari pleaded guilty on October 31, 2024, to charges of wire fraud, theft of government property, and filing a false tax return.  The day after his guilty plea he engaged in brokerage activities in violation of his condition of release.  Upon discovery of his activities, the Court revoked its order of release and remanded him to the custody of the U.S. Marshal pending sentencing.

 

Case Background

Court documents showed that Giuttari purported to match borrowers seeking short-term loans with private lenders seeking secured investments in real estate. 

As part of the scheme, Giuttari served as the clearing house for funds between the borrowers and the investors. In executing his scheme, Giuttari directed investors and closing attorneys to send all or a portion of the loan proceeds directly to him through his multiple business entities and business bank accounts. 

Instead of forwarding these funds to borrowers as represented to the investors, Giuttari used the money personally or to repay earlier investors who were seeking a return on their investments.

Additionally, Giuttari fraudulently acquired $167,800 in COVID-19 pandemic Economic Injury Disaster Loans (EIDL) for Hybrid Capital Group and THE FENS CO that he was not entitled to receive, and he falsely stated on his 2019 U.S. Individual Income Tax Return that his total income was $22,176, when in fact it was at least $541,000, thus failing to pay $140,102 due the IRS.