PROVIDENCE, R.I. (WPRI) — Accused fraudster Joseph Giuttari was arraigned Tuesday in federal court, where multiple people said he stole their life savings as part of an illegal investment scheme.
Giuttari has been charged with wire fraud, stealing government property and filing a false tax return. He has agreed to plead guilty and was released on bail under the condition that he not contact any victims or witnesses.
He must also stop accepting any new clients as he winds down and closes his brokerage firm, Hybrid Capital Group LLC. U.S. Magistrate Judge Patricia Sullivan ordered he notify his existing client base of the criminal charges against him and his businesses.
Giuttari, 62, entered the courtroom wearing a dark suit. He avoided making eye contact with victims in attendance, including Mike Pare, who openly wept when Guitari entered the room.
Pare attended the arraignment with his wife, Diane. They told Target 12 Giuttari stole their entire life savings and then their house after taking out mortgages on their property without their knowledge.
“He’s a thief,” Pare said. “Run from him because he will steal everything from you. He’s an awful person and I hope he rots in jail because he took everything from our kids, our entire retirement is gone. I’m dying and I am stuck with nothing now.”
Outside court, Giuttari tried repeatedly to run away from Target 12.
He eventually answered some questions, expressing remorse for his actions and saying he’s working to get the victims back their money. He declined to comment when asked other questions, including what happened to the money he’s accused of stealing.
Target 12 first revealed Giuttari’s investment scheme publicly last Tuesday. Two days later, Rhode Island U.S. Attorney Zachary Cunha’s office filed the criminal charges and Giuttari signed the plea agreement.
Federal officials accuse 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.
Federal investigators also accuse him of lying on government documents to obtain money through federal COVID-relief funds, and underreporting his income on a 2019 tax return.
“It is very, very sad — one person could cause that much pain and just in the name of greed,” said Donna deWardener, a Narragansett resident who told Target 12 she’s owed $2 million after being duped 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. His next court date has not yet been scheduled.
Giuttari will be required to pay restitution to his victims, including the government, according to the agreement. Attorney John MacDonald, who’s representing Giuttari, declined to comment outside court.
Pare, who’s currently living with a feeding tube, said Giuttari “ripped my heart out.”
“He’s ripped our lives apart,” he added. “Where’s our money? We need something to live on.”
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 .
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