A Johnston-based real estate investment firm, its owner, and an employee were sentenced in U.S. District Court for defrauding homeowners and financial institutions. The announcement was made by Acting United States Attorney Sara Miron Bloom.
In April 2023, a jury found Gregory F. Aloisio, 63, his company Aloisio Group, LLC, and employee John DiFruscio, Jr., 72, guilty of fraud-related charges. They were involved in a scheme to fraudulently acquire properties from financially distressed homeowners and obtain fees through deceitful practices involving property rentals and short sales.
The convictions included conspiracy to commit bank and wire fraud against Aloisio Group, LLC and DiFruscio, Jr., while Gregory Aloisio and John DiFruscio faced additional counts of bank fraud and wire fraud. Gregory Aloisio also faced a charge of money laundering.
U.S. District Court Judge Mary S. McElroy sentenced Gregory Aloisio to 12 months plus one day of incarceration followed by three years of supervised release. John DiFruscio received three years of supervised release with the first three months in home confinement. The Aloisio Group was given one year of probation. Restitution orders are expected within 30 days.
Evidence presented during the trial revealed that the defendants misled homeowners and financial institutions by falsely claiming no relationship existed between them that could influence property transactions. They filed fraudulent documents to secure lender approvals for short sales while planning illegal property flips for profit.
Homeowners were deceived into believing they were receiving legitimate assistance for their financial distress when they were actually being exploited as part of the scheme. Some lost their homes or paid rent to the conspirators after moving out under false pretenses.
The case was prosecuted by Assistant United States Attorneys Sandra R. Hebert and Milind M. Shah following investigations by the U.S. Department of Housing and Urban Development – Office of Inspector General and the FBI.
