A Johnston-based real estate investment firm, along with its owner and an employee, faced sentencing in U.S. District Court for defrauding homeowners and financial institutions. Acting United States Attorney Sara Miron Bloom announced the sentences.
In April 2023, a jury found Gregory F. Aloisio, 63, his company Aloisio Group, LLC, and employee John DiFruscio Jr., 72, guilty of fraudulent schemes involving financially distressed homeowners. These schemes included obtaining properties under false pretenses, fraudulently earning fees from property rentals and short sales, and flipping properties for profit.
Both Aloisio Group, LLC and DiFruscio were convicted of conspiracy to commit bank and wire fraud. Gregory Aloisio was additionally convicted on charges of bank fraud and money laundering.
Judge Mary S. McElroy sentenced Gregory Aloisio to 12 months plus one day in prison followed by three years of supervised release. John DiFruscio Jr. received three years of supervised release with the first three months under home confinement. The court imposed a year of probation on Aloisio Group. Restitution orders are expected within 30 days.
The trial presented evidence that the defendants misrepresented their relationships with homeowners to manipulate property transactions at suppressed prices for personal gain. They filed false documents regarding commercial relationships to secure short sale approvals and engaged in pre-arranged agreements to flip properties post-sale.
The scheme misled homeowners into believing they were being helped out of financial distress while exploiting them instead. Some lost their homes or paid rent unknowingly contributing to the fraud.
Assistant United States Attorneys Sandra R. Hebert and Milind M. Shah prosecuted the case following investigations by the U.S. Department of Housing and Urban Development's Office of Inspector General and the FBI.
