Dana Giacchetto

Los Angeles, CA: (Aug-10-07) The US Securities and Exchange Commission brought charges against former celebrity money manager Dana Giacchetto, alleging that he took money from accounts of non-celebrity clients to finance a high-flying lifestyle and give extraordinary returns or mask losses to star clients like Tobey Maguire, Courteney Cox, and Cameron Diaz. Giacchetto pleaded guilty to fraud in 2000, served three years in prison, was barred from the investment advisory business, and agreed to pay $14.4 million to settle the allegations. The bankruptcy trustee represents the interests of clients and other creditors who were bilked out of an estimated $10 million to $15 million by Giacchetto's former company, The Cassandra Group, which filed for Chapter 7 bankruptcy in 2000. Legal counsel have recovered about $7 million during the seven years of bankruptcy proceedings and estimated that creditors were still owed $3 million.

In a recent development in the case, Giacchetto surrendered his share of a book deal and rights to his story in a bid to satisfy about $3 million owed to former clients and others. The settlement filed in US Bankruptcy Court in Manhattan, stated that Giacchetto relinquished any rights to a movie, TV show or serialization of the book, "You Will Make Money in Your Sleep: The Story of Dana Giacchetto, Financial Advisor to the Stars." He also surrendered any intellectual property rights to the book, and his life rights, until his creditors receive full repayment. [REUTERS: MONEY MANAGER FRAUD]

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Published on Aug-13-07