SAN FRANCISCO (CN) – Former stockbroker David C. Cacchione was sentenced to 60 months in prison and ordered to pay $50 million in restitution for his role in helping disgraced financier William “Boots” Del Biaggio orchestrate a $100 million fraudulent loan scheme.
Cacchione, 44, of Woodside, Calif., pleaded guilty to one count of securities fraud in March.
As the directing manager at Merriman, Curhan, Ford & Co., Cacchione gave Del Biaggio client brokerage statements, which Del Biaggio doctored and used to take out or renew more than $100 million in fraudulent loans, according to the plea agreement.
Cacchione also met with lenders and signed false account-control agreements to create the illusion that Del Biaggio was in charge of the client accounts, the plea agreement states.
Del Biaggio was sentenced to 97 months in prison in September.
Cacchione’s actions resulted in a $47 million loss, according to court documents.
In addition to the prison time and restitution, U.S. District Court Judge Charles Breyer also sentenced Cacchione to three years probation.
Out on bail, Cacchione is scheduled to self-surrender on Jan. 8, 2010.
The case was prosecuted by assistant U.S. attorney Jonathan Schmidt.