GARY C. GITTO, Former
Gitto/Global Executive Sentenced for Fraud
May 02, 2011
A Leominster man was sentenced in federal court for conspiracy and wire
fraud in connection with a multi-million-dollar scheme run from a former
plastics company in Lunenburg, the Gitto/Global Corporation.
GARY C. GITTO, 49, of Lunenburg, was sentenced by U.S. District Judge F.
Dennis Saylor IV to 59 months’ imprisonment, to be followed by three
years of supervised release, and was further ordered to pay restitution
in the amount of $23 million. GITTO previously pleaded guilty to
conspiracy, mail fraud and money laundering on October 4, 2010.
the earlier plea hearing, the prosecutor told the court that had the
case proceeded to trial, the government’s evidence would have proven
that during the period 1998 through September 2004, the principals of
Gitto/Global Corporation, a plastics manufacturer in Lunenburg, were
engaged in a complex scheme to defraud the company’s secured lenders by
systematically overstating the company’s sales and inventory, thereby
inducing the lenders to advance millions of dollars that would not have
been advanced had the company accurately reported its assets. In order
to support the false claims, numerous Gitto/Global employees spent hours
of every business day generating supporting false documentation
including invoices, bills of lading, and packing slips. GITTO was an
owner and officer of Gitto/Global. A co-defendant and company co-owner,
FRANK MILLER, who was responsible for the day-to-day operation of the
fraud, was previously sentenced to 87 months in prison. Two remaining
co-defendants, WILLIAM DEAKIN and LOUIS PELLEGRINE, JR. are scheduled to
be sentenced later this month.