Newport scam artist gets 1 year in prison

A federal judge sentenced a Newport Beach man Monday to one year and one day in prison for an online scam that cheated small-business owners out of almost $120,000.

Daniel Brucato will also have to pay that amount in restitution to his victims and submit to three years of supervision after his term behind bars, according to Assistant U.S.Atty. Vibhav Mittal.

Brucato previously admitted to running a scheme where he sold nonexistent goods, touting things such as Rolex watches, online.

He emailed victims, telling them he had clothes, hats and other apparel available for wholesale prices, but after they wired money to Brucato, he never sent the items.

As part of an agreement to plead guilty to fraud in January, Brucato admitted using the scam six times between April and December 2011.

Prosecutors said Brucato’s ill-gotten money — $119,850 in total — went toward expenses like rent in Newport Coast and payments on his Porsche SUV.

A lawyer for Brucato said he did not deserve jail time and asked instead for three years of probation, which would include six months at a residential re-entry facility.

Jesse Gessin, deputy federal public defender, said Brucato is unlikely to repeat his crimes.

“He has a history of gainful employment and even conducted legitimate business with the victims,” Gessin wrote in a court filing. “Mr. Brucato’s conduct comes on the heels of losing both his mother and father.”

Gessin also argued for leniency because of trauma in Brucato’s teenage years.

“When he was 14 years old, he was traveling in a car with friends and shortly after he had switched seats with another occupant of the vehicle.... The vehicle was involved in an accident and the occupant seated in his former seat was killed,” Gessin wrote as one example. “Brucato carried some of his friends from the scene of the accident.... After the accident, Brucato experienced sadness and had nightmares.”

Judge David O. Carter, however, chose to impose the yearlong prison term. Prosecutors had recommended 15 months behind bars.