Quantcast

HIGH FLYING MONEY MANAGER HITS THE GROUND

Phish, DiCaprio Investment Avisor
Dana Giacchetto Charged With Theft
Never trust a guy who says he's robbing Leo to pay Matt.

Money manager and investment advisor to A-list stars, Dana Giacchetto, was charged with three counts of illegally transferring $20 million and stealing $6 million of client's money on Monday (4/3). He is accused of securities fraud and lying to the Securities and Exchange Commission. If convicted, he could face up to 20 years in jail and fines of $1.5 million.

Giacchetto's asset management business, the Cassandra Group, founded in 1988, was a major investor in Digital Entertainment Network. Giacchetto's clients have included teen dreams Leonardo DiCaprio, Matt Damon, Ben Affleck, movers and shakers in New York City's artworld, Michael Ovitz and hipster rockers such as Phish [www.phish.com] . It is alleged that he deposited money from client's accounts into a Cassandra account and check-kited “investment” dividends to older clients using money from new clients. Can you say Ponzi? I knew you could.

Giacchetto's troubles started to gain attention at the end of last year. In November, the friend who helped him gain entrance into the glamorous life, Creative Artists Agent Jay Maloney, committed suicide after struggling with substance abuse problems. The following month Giacchetto was in the gossip pages as clients, including pals DiCaprio and Damon, began abandoning the high-profile manager, questioning some of his risky investments – including Paradise Music & Entertainment, whose chairman and CEO is Bob's son Jesse Dylan.

The big loser would appear to be Phish. The band's suspicions were raised when their accountant noticed withdrawals from their account. SEC papers show that Giacchetto promised to repay the group $4.7 million.

Giacchetto is expected to surrender to the FBI today. Phish is not expected to surrender without a fight. At least three Internet start-ups have said they're interested in hiring Dana as their head of finance.

NEAR TRUTHS:
THE AGENCY SAGA
What do you want from live? (6/11a)
REVENUE CHART: OLIVIA’S ARMY
Looks like she's got staying power. (6/11a)
SIGNS OF HITS LIST
We're reading the tea leaves. (6/11a)
WATCH THE FIRST OFFICIAL VIDEO FOR "FEELING GOOD"
The Black Music Month celebration continues with a classic from a legend, (6/10a)
MUSIC’S HOTTEST FIRMS: HERTZ LICHTENSTEIN YOUNG & POLK LLP
Is there a lawyer in the house? (6/11a)
RHYTHM, BLUES AND THE FUTURE
The musical tapestry we know as R&B.
WHO'S NEXT?
Predicting the next big catalog deal.
JUST THE VAX, MA'AM
Once we all get vaccinated, how long before we can party?
WORLDWIDE GROOVE
How is globalization bringing far-flung territories into the musical mainstream?
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)