An investment broker has been sentenced in federal court in San Francisco to five years in prison for his role in a $100 million fraud scheme.
David Cacchione, 44, of Woodside, was sentenced Wednesday by U.S. District Judge Charles Breyer, who also ordered him to pay about $50 million in restitution.
Cacchione was a former managing director of Merriman, Curhan, Ford & Co., an investment brokerage firm in San Francisco.
He pleaded guilty in March to one count of securities fraud and admitted to giving client brokerage statements to former Silicon Valley venture capitalist William “Boots” Del Biaggio.
Del Biaggio, a former co-owner of the San Jose Sharks, then doctored the statements and used them to obtain or renew $100 million in loans, partly for the purpose of buying a $25 million interest in the Nashville Predators hockey team, according to court documents.
U.S. Attorney Joseph Russoniello said Cacchione also helped Del Biaggio in the fraud by meeting with bank officials to create the impression that Del Biaggio owned and controlled these client accounts.
Prosecutors said in court papers that lenders got some of their money back, but will lose up to $47 million.
Del Biaggio was sentenced by Breyer last month to eight years and one month in prison. He was ordered to pay $67.5 million in restitution for the loan fraud and for the misappropriation of an additional $20 million from three investment funds he managed.
Defense attorney Nanci Clarence said in a sentencing memorandum that while Cacchione’s actions were “reckless and dishonest,” he did not stand to gain personally from the fraud and believed that Del Biaggio would be able to repay the loans.
