SAN FRANCISCO (CN) – William “Boots” Del Baggio III was sentenced Tuesday to 97 months in federal prison and ordered to pay $67.5 million in restitution for securities fraud. Del Baggio, 42, a co-founder of San Jose’s Heritage Bank and former part owner of the San Jose Sharks hockey team, is a scion of a prominent San Jose family.
Del Baggio, of San Jose, defrauded banks for $100 million in loans and stole investors’ money from three funds he helped manage: San Hill Capital Partners III, BDB Management and BDB Management II, prosecutors said.
Del Baggio cried as he faced sentencing, the San Jose Mercury News reported, telling U.S. District Judge Charles Breyer, “There were so many investments and I was under a lot of pressure. I thought somehow I could pull it all together.”
But Judge Breyer was not impressed. “It was systematic,” Breyer told Del Baggio. “Every single day you had to make these decisions: to cheat, to lie.”