Sign in Subscribe
Fraud

Real Estate Investment Firm Owner and Employee Sentenced for Conspiracy and Fraud

Strategic Insights

— 1 min read

A Johnston-based real estate investment firm, Aloisio Group, LLC, and its owner, Gregory F. Aloisio, 63, have been sentenced for conspiring to defraud and for defrauding homeowners and financial institutions. The scheme, which involved lying to homeowners and financial institutions, resulted in some homeowners losing their homes and others paying rent to the co-conspirators. The case was investigated by the U.S. Department of Housing and Urban Development's Office of Inspector General and the FBI.

Key Takeaways:

  • The defendants, Gregory Aloisio and John DiFruscio, Jr., were convicted of conspiracy to commit bank and wire fraud, bank fraud, and wire fraud.
  • Aloisio was also convicted of money laundering and sentenced to 12 months and one day in prison, followed by three years of supervised release.
  • DiFruscio, Jr. was sentenced to three years of supervised release, with the first three months in home confinement.
  • The Aloisio Group was sentenced to one year of probation and ordered to pay restitution to the affected homeowners.
  • The government presented evidence that the defendants lied to homeowners, financial institutions, and others to further their scheme.
  • The defendants misrepresented their relationships with homeowners and financial institutions, and lied about the identity of the seller, buyer, and cash involved in the transactions.
  • Some financially distressed homeowners were convinced to move out of their residences and lost their homes, while others remained in their properties and paid rent to the co-conspirators.

Statistics:

  • The defendants were convicted of conspiracy to commit bank and wire fraud, bank fraud, and wire fraud.
  • Aloisio was sentenced to 12 months and one day in prison.
  • DiFruscio, Jr. was sentenced to three years of supervised release and three months in home confinement.
  • The Aloisio Group was sentenced to one year of probation.
  • The defendants were accused of deceiving homeowners into believing they offered a legitimate solution to their financial distress.

Sources:

  • U.S. FBI

Read more