Home Industries Financial Services Mortgage broker sentenced to prison for Ponzi scheme, theft of $4.6M

Mortgage broker sentenced to prison for Ponzi scheme, theft of $4.6M

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PBN Staff

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03/27/2025

DistrictCourt — JOSEPH GIUTTARI, owner and operator of Hybrid Capital Group LLC, THE FENS CO., LLC, and Realty Funding Advisors LLC, was sentenced to 55 months in federal prison or running a Ponzi scheme, fraudulently acquiring Coronavirus Aid, Relief and Economic Security Act loans and filing a false tax return, Acting U.S. Attorney for Sara Miron Bloom announced Thursday. / COURTESY U.S. DISTRICT COURT

PROVIDENCE – Mortgage broker Joseph Giuttari was sentenced to 55 months in federal prison for running a Ponzi scheme, fraudulently acquiring Coronavirus Aid, Relief and Economic Security Act loans and filing a false tax return, Acting U.S. Attorney for Rhode Island Sara Miron Bloom announced Thursday. The disgraced Rhode Island broker is the owner and

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PROVIDENCE – Mortgage broker Joseph Giuttari was sentenced to 55 months in federal prison for running a Ponzi scheme, fraudulently acquiring Coronavirus Aid, Relief and Economic Security Act loans and filing a false tax return, Acting U.S. Attorney for Rhode Island Sara Miron Bloom announced Thursday. The disgraced Rhode Island broker is the owner and operator of Hybrid Capital Group LLC, THE FENS CO., LLC, and Realty Funding Advisors LLC. In addition to prison time, he was ordered to pay a fine of $20,000 and restitution to victims of his Ponzi scheme, to SBA loan programs, and to the IRS totaling $4.6 million. On Oct. 21, Giuttari pleaded guilty to charges of wire fraud, theft of government property, and filing a false tax return. However, the next day Giuttari engaged in brokerage activities in violation of his condition of release. Upon discovery of his activities, the court revoked its order of release and remanded him to the custody of the U.S. Marshal pending sentencing. While entering his plea, he admitted to a federal judge 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 his personal 2019 IRS tax return a total income of more than $540,000. Additionally, Giuttari admitted he fraudulently applied for and acquired more than $167,800 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 some earlier investors and lenders by paying them back using new investor money he obtained.