A Rhode Island mortgage broker engaged in fraudulent activities involving Ponzi schemes and the misuse of COVID-19 pandemic-related SBA loans has been sentenced to federal prison. The announcement was made by Acting United States Attorney Sara Miron Bloom.
Joseph Giuttari, owner and operator of companies including Hybrid Capital Group, LLC, was sentenced to 55 months in federal prison. His sentence includes three years of supervised release, a $20,000 fine, and restitution payments totaling $4,579,130.95. The restitution is to address the fraud involving Ponzi schemes, the SBA loan program fraud, and tax discrepancies.
Giuttari pleaded guilty in October 2024 to wire fraud, theft of government property, and filing a false tax return. Following his guilty plea, he violated his release conditions by continuing brokerage activities, resulting in the revocation of his release and his custody by the U.S. Marshal until sentencing.
Court records revealed Giuttari's fraudulent Ponzi scheme, where he matched borrowers with private lenders for short-term real estate loans. However, he misallocated funds for personal use and to pay back earlier investors instead of forwarding them to borrowers.
In addition to his Ponzi scheme, Giuttari unlawfully obtained $167,800 in Economic Injury Disaster Loans (EIDL) during the COVID-19 pandemic. His falsely filed tax return in 2019 reported an income of $22,176, despite his actual earnings being at least $541,000, resulting in unpaid taxes due to the IRS of $140,102.
Assistant United States Attorney Sandra R. Hebert prosecuted the case following investigations by the FBI, IRS Criminal Investigation, and the FDIC Office of Inspector General.
