Mortgage broker who ran Ponzi scheme sentenced to more than 4 years in prison | ABC6

PROVIDENCE, R.I. (WLNE) -- Joseph Giuttari, a mortgage broker and owner of several financial firms, has been sentenced to federal prison for orchestrating a Ponzi scheme that resulted in significant financial losses for investors. Acting United States Attorney Sara Miron Bloom announced that Giuttari will also be required to make restitution to the victims of his fraudulent activities.

Giuttari pleaded guilty in October 2024 to multiple charges, including wire fraud, theft of government property, and filing a false tax return. His businesses, Hybrid Capital Group, LLC, THE FENS CO., LLC, and Realty Funding Advisors, LLC, were used as platforms for his illicit operations.

According to Bloom, Giuttari's scheme involved matching borrowers looking for short-term loans with private lenders, while misappropriating funds for his personal benefit. He fraudulently obtained over $160,000 in SBA loans related to the COVID-19 pandemic and failed to pay more than $140,000 in taxes owed to the IRS.

In addition to his prison sentence of 55 months, Giuttari faces three years of supervised release and has been ordered to pay $20,000 in fines. The total restitution, which includes payments to victims of his Ponzi scheme, SBA loan programs, and the IRS, amounts to $4,579,130.95.

Bloom emphasized the serious nature of Giuttari's crimes and the impact they had on his victims, highlighting the pursuit of justice in such cases of financial misconduct.