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Mortgage broker admits to fraudulent activities

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PBN Staff

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11/01/2024

A RHODE ISLAND mortgage broker recently admitted in federal court to fraudulently acquiring Coronavirus Aid, Relief and Economic Security Act loans and filing a false tax return. / COURTESY U.S. DISTRICT COURT

PROVIDENCE – A Rhode Island mortgage broker admitted in federal court to running a Ponzi scheme, fraudulently acquiring Coronavirus Aid, Relief and Economic Security Act loans and filing a false tax return, U.S. Attorney for Rhode Island Zachary A. Cunha announced. Joseph Giuttari admitted to a federal judge Thursday that he misappropriated more than $1.5

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PROVIDENCE – A Rhode Island mortgage broker admitted in federal court to running a Ponzi scheme, fraudulently acquiring Coronavirus Aid, Relief and Economic Security Act loans and filing a false tax return, U.S. Attorney for Rhode Island Zachary A. Cunha announced. Joseph Giuttari admitted to a federal judge Thursday that he misappropriated more than $1.5 million of investors’ funds by using the money to repay earlier investors, support his own international investment opportunities and to cover personal expenses. Giuttari, owner and operator of Hybrid Capital Group LLC; THE FENS CO. LLC; and Realty Funding Advisors LLC, among others, also admitted that he filed fraudulent applications seeking COVID-19 pandemic Economic Injury Disaster Loans for two of his companies, and that he failed to accurately report on his personal 2019 IRS tax return a total income of more than $540,000. Additionally, Giuttari admitted to the court that he fraudulently applied for and acquired more than $160,000 in pandemic EIDL loans for Hybrid Capital Group and THE FENS CO. that he was not entitled to receive. He did so by falsely stating on EIDL applications that his companies were not engaged in lending or investments. He further admitted that 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. According to court documents, Giuttari falsely misrepresented his investment experience and success in an effort to persuade investors. As part of his scheme, Giuttari allegedly misrepresented to investors the amount a borrower was interested in obtaining; misrepresented that documents were in place to secure the investment funds; inflated how much borrowers owed; used borrowers’ names without their authorization to obtain funds from investors; and created fraudulent promissory notes and real estate documents bearing forged signatures of borrowers. He also admitted in court that he lulled investors with false and fraudulent excuses and promises, and that he placated and appeased certain earlier investors and lenders by paying them back using new investor monies he obtained. Giuttari pleaded guilty to charges of wire fraud, theft of government property and filing a false tax return. Giuttari is scheduled to be sentenced on Jan. 30, 2025.