PROVIDENCE – A Johnston-based real estate investment firm, the company’s founder, and a person who held himself out to be a negotiator on behalf of financially distressed homeowners but who was, in reality, associated with the real estate investment firm, have been indicted by a federal grand jury on charges they participated in a series of schemes to defraud homeowners and financial institutions.
It is alleged in the indictment that members of the conspiracy, Gregory F. Aloisio, 60, of Johnston, his real estate investment company, Aloisio Group, LLC, which also did business as Quietstorm Professional Services, and John DiFruscio, Jr., 68, of North Providence, who is associated with Quietstorm Professional Services, conspired to fraudulently obtain properties from financially distressed homeowners; fraudulently obtained fees, commissions, and other income associated with the rental, use and short sale of homeowners’ properties; fraudulently purchased properties in short sales and illegally “flipped” them for significant personal gain; and defrauded several financial institutions.
It is alleged in the indictment that as part of the conspiracy, co-conspirators held themselves out as negotiators who, for a fee, could assist in keeping properties from being foreclosed upon. Among the fraudulent actions allegedly employed by the co-conspirators:
An indictment unsealed today in U.S. District Court in Providence charges Gregory Aloisio, Aloisio Group, LLC, and John DiFruscio, Jr., with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and money laundering, announced Acting United States Attorney Richard B. Myrus, Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development - Office of Inspector General, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert and Acting United States Attorney Richard B. Myrus.