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Connecticut man who managed a real estate agency has been sentenced to federal prison for his involvement in a Massachusetts flipping scheme. James Macchio, 46, of Glastonbury received a 42-month prison term, followed by two years of supervised release, as part of his sentence.

    Macchio was also ordered to forfeit $621,579 and pay at least $2,567,154 in restitution. He pleaded guilty in May to one count of conspiracy to commit wire fraud. Macchio's attorney praised the judge for a "fair" 42-month sentence, which represents a significant reduction from the recommended guidelines.

    According to federal officials, Macchio and another real estate agent used straw buyers to acquire properties owned by their clients' banks, federal agencies, and other mortgage holders. They hid their involvement as the "de facto buyers" of short sale properties and used insider knowledge to minimize sale prices, maximizing their gain from flipping.

    During the scheme, Macchio and others submitted fraudulent renovation bids from contractors to their own clients, hiring different contractors at a lower cost and pocketing the difference. The group also defrauded the Small Business Administration by obtaining pandemic relief loans to fund their real estate fraud scheme during the COVID-19 pandemic.

    Co-conspirator Sheldon Haag previously pleaded guilty and was sentenced to one year and a day in prison followed by supervised release.