Gary Gitto, the namesake and co-owner of defunct compounder Gitto Global Corp., was sentenced May 2 to almost five years in prison for conspiracy and wire fraud.
Gitto of Lunenburg, Mass., was sentenced in accordance with a plea bargain to 59 months in prison by U.S. District Judge Dennis Saylor in Worcester, Mass. Gitto, 49, also was ordered to pay $23 million in restitution and will be supervised for three years after serving his sentence, according to a May 2 news release from the FBI.
FBI officials alleged that the principals of Lunenburg-based Gitto Global a compounder of PVC and other resins engaged in a complex scheme to defraud the company's secured lenders between 1998 and 2004.
Gitto Global principals furthered the scheme 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, according to the FBI release.
In March, Gitto Global co-owner and President Frank Miller was sentenced to more than seven years in prison for his role in the scheme. Company officials William Deakin and Louis Pellegrine Jr. are scheduled to be sentenced later this month.
Charges against company official Charles Gitto Jr. Gary Gitto's father were dropped late last year for medical reasons. Another defendant, John Moritz Jr., passed away in 2009 before facing trial.
Gitto Global's assets were sold in late 2004 to local businessman Steven Graham, who continues to operate the business as S&E Specialty Polymers LLC.