San Francisco Broker Charged with Aiding and Abetting Fraud in Connection with $100M in Loans

Allison Tussey —  April 6, 2009 — Leave a comment

David Scott Cacchione, 44, Woodside, California, is charged with one count of aiding and abetting securities fraud and is alleged to have aided and abetted William “Boots” Del Biaggio, III, in connection with a scheme to defraud multiple parties to obtain and guarantee loans of approximately $100 million for various ventures, including the purchase of an interest in a major national sports league franchise.

The information charges that Cacchione, a Managing Director at a San Francisco brokerage firm, improperly obtained copies of client account statements and provided them to Del Biaggio, who falsified the statements to give the appearance that he owned the accounts’ securities. Cacchione is also alleged to have falsified Account Control Agreements to give the appearance that Del Biaggio owned and controlled those client accounts. These falsified account statements and Account Control Agreements were later used to apply for and guarantee loans from a number of persons and entities.

Separately, the Securities and Exchange Commission filed a civil complaint against Cacchione arising out of some of the same conduct alleged in the information.

“Clients put their trust in investment professionals to act in the best interests of the client. The integrity of the markets depends on those professionals acting within the law,” United States Attorney Joseph P. Russoniello said. “When they violate their fiduciary duty and break the law, they will be prosecuted.”

The date for Cacchione‘s initial court appearance has not yet been set.

The maximum statutory penalty for securities fraud in violation of 18 U.S.C. section 1348 is 25 years imprisonment and a fine of $250,000 or up to twice the defendant’s gain or the victims’ loss, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

United States Attorney Joseph P. Russoniello made the announcement. Timothy Crudo is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Ponly Tu. The prosecution is the result of an investigation by the Federal Bureau of investigation and the Securities and Exchange Commission.

Please note, an information contains only allegations against an individual and, as with all defendants, Cacchione must be presumed innocent unless and until proven guilty.

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Allison Tussey

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