Home San Francisco Press Releases 2009 David S. Cacchione Sentenced to 60 Months' Imprisonment for Securities Fraud
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David S. Cacchione Sentenced to 60 Months' Imprisonment for Securities Fraud
Former Managing Director of Investment Brokerage Firm Receives Sentence for His Role in Defrauding Lenders in Connection with More Than $100 Million in Loans

U.S. Attorney’s Office October 07, 2009
  • Northern District of California (415) 436-7200

SAN FRANCISCO—David S. Cacchione was sentenced today to 60 months in prison and ordered to pay approximately $50 million in restitution for his role in a $100 million fraud scheme, United States Attorney Joseph P. Russoniello announced.

Cacchione, 44, of Woodside, Calif., was charged by Information on March 24, 2009, with one count of securities fraud. He pleaded guilty on March 31. According to the plea agreement, Cacchione worked as managing director at Merriman, Curhan, Ford & Co. an investment brokerage firm in San Francisco. While at Merriman, Cacchione provided William Del Biaggio, III with client brokerage statements. Del Biaggio doctored those statements and used them to defraud banks and other lenders to obtain or renew approximately $100 million in loans. Cacchione further helped Del Biaggio defraud banks, by signing false account control agreements and meeting with lenders to create the impression that Del Biaggio owned and controlled these client accounts.

According to court documents, Cacchione’s actions related to the charged, fraudulent scheme ultimately caused $47 million in losses. In a companion case, Del Biaggio’s was sentenced to 97 months on Sept. 8, 2009.

The sentence was handed down by U.S. District Court Judge Charles R. Breyer. Judge Breyer also sentenced Cacchione to a three-year period of supervised release. Cacchione, who is out on a bond, is scheduled to self surrender on Jan. 8, 2010.

Jonathan Schmidt is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

Further Information:

Case #: CR 08-0874-CRB

A copy of this press release may be found on the U.S. Attorney's Office's Web site at www.usdoj.gov/usao/can.

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.

Judges’ calendars with schedules for upcoming court hearings can be viewed on the court's Web site at www.cand.uscourts.gov.

All press inquiries to the U.S. Attorney's Office should be directed to Jack Gillund at (415) 436-6599 or by e-mail at Jack.Gillund@usdoj.gov.

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