PROVIDENCE, R.I. (WPRI) — Federal prosecutors are calling on a judge to revoke the bail of accused fraudster Joseph Giuttari, alleging he's been illegally brokering real-estate deals in violation of a court order.
Giuttari, 62, pleaded guilty on Oct. 31 to defrauding people in an illegal investment scheme, stealing government property and lying on a tax return.
He's since been out of jail awaiting sentencing based on a set of conditions, including not brokering any new deals with investors.
In a court filing Monday, Assistant U.S. Attorney Sandra Hebert accused Giuttari of coordinating two new loans with an investor on Nov. 1, earning a broker's fee of nearly $15,000.
"Law enforcement recently learned that he violated these conditions the day after his guilty plea," Hebert wrote.
"Given Giuttari’s violation of this condition, which was crafted by the court to protect the community from further economic harm, the court should find that there are no conditions that will protect the community, and that Giuttari is unlikely to abide by conditions of release," she added.
Hebert said the borrower in the Nov. 1 deal also told law enforcement Giuttari pitched "an investment opportunity to make a short-term loan, which the borrower had declined."
John MacDonald, an attorney representing Giuttari, declined to comment, saying he's still reviewing the new allegations against his client.
Target 12 first revealed Giuttari’s investment scheme publicly in October. Two days after the report came out, Rhode Island U.S. Attorney Zachary Cunha’s office filed the criminal charges and Giuttari signed a plea agreement.
Federal officials accused Giuttari of initially lulling investors into lending or borrowing money with him for short-term real estate deals. The scheme began in 2015 and continued through last year, according to court documents.
Federal investigators said there were more than 10 victims with a combined loss of between $3.5 million and $9.5 million. They said Giuttari would use the funds for personal gain or to pay back other investors.
In October, several of Giuttari's alleged victims showed up to his arraignment in federal court in Providence, sharing their stories about how they were duped by him and his scheme.
“It is very, very sad — one person could cause that much pain and just in the name of greed,” Donna deWardener, a Narragansett resident, said at the time. She told Target 12 she’s owed $2 million after being fooled by Giuttari, who is also her cousin.
Giuttari is facing a maximum sentence of 33 years in prison and $750,000 in fines. He will likely receive a far lighter sentence after striking a plea deal with prosecutors.
No new court date has been scheduled to determine whether his bail should be revoked.
His sentencing date is scheduled for Jan. 30.
Eli Sherman (esherman@wpri.com) is a Target 12 investigative reporter for 12 News. Connect with him on Twitter and on Facebook.
Tim White (twhite@wpri.com) is Target 12 managing editor and chief investigative reporter and host of Newsmakers for 12 News. Connect with him on Twitter and Facebook.