Johnston real estate investment company, founder, negotiator indicted on federal charges

Updated at 10:26 a.m. on June 2, 2021.

PROVIDENCE – The U.S. Attorney’s Office for the District of Rhode Island has announced a grand jury indictment of a Johnston-based real estate investment firm, the company’s founder and a person who held himself out as a negotiator for distressed properties.

The indictment alleges that Gregory F. Aloisio, 60; his real estate investment company, Aloisio Group LLC, which also did business as Quietstorm Professional Services; and John DiFruscio Jr., 68, of North Providence, conspired to fraudulently acquire properties from distressed homeowners.

The indictment, unsealed on March 9 in U.S. District Court in Providence, charges Aloisio, Aloisio Group LLC and DiFruscio with conspiracy to commit bank fraud and wire fraud; bank fraud; wire fraud; and money laundering.

The case will be prosecuted by Assistant U.S. Attorney Sandra R. Hebert and Acting U.S. Attorney Richard B. Myrus.

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The indicted parties are accused of fraudulently obtaining fees and commissions associated with the rental use and short sale of homeowner properties, and of fraudulently purchasing these properties in short sales and then illegally “flipping” them for substantial personal gain.

According to a news release, the parties convinced many financially distressed homeowners to move out of their homes and allow them to rent out the premises in a fraudulent “rent-to-own” program.

U.S. attorneys allege that some homeowners were told that DiFruscio was working on their behalf, when he instead was negotiating short sales of properties on behalf of Aloisio Group, the prospective purchaser of the short sale. Financial institutions incurred significant losses, according to the release.

After purchasing the properties, the co-conspirators arranged to sell, or “flip” the homes at substantially higher prices, the release states.

CORRECTION: A previous version of this story included misspellings of Gregory F. Aloisio’s name, as well as a misspelling of Aloisio Group LLC.

Mary MacDonald is a staff writer for the PBN. Contact her at MacDonald@PBN.com.