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S.J. man sentenced 8 years for securities fraud
Berryessa Sun Staff
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(September 17, 2009 - Thursday) - "I would hope this sentence and those imposed by the courts in other recently publicized investment fraud cases will make it clear that the federal government will prosecute to the fullest extent permitted by law those who defraud their investors, in particular, and perpetrate a fraud on the market, in general," U.S. Attorney Joseph P. Russoniello said. "Mr. Del Biaggio caused substantial harm to his victims, in some cases jeopardizing their future financial sustainability. The sentence imposed should be a warning to others that the prospect of easy profits is not worth the risk of loss and shame that detection and prosecution is certain to bring."
Del Biaggio, 42, of San Jose, was charged of one count of securities fraud on Dec. 4, 2008. He pleaded guilty on Feb. 4.
According to the plea agreement, Del Biaggio admitted to using doctored brokerage statements to defraud banks and other lenders to obtain or renew approximately $100 million in loans. He also admitted to his role in the misappropriation of investors' funds in three investment funds at which he was a principal: Sand Hill Capital Partners III; BDB Management LLC; and BDB Management III. For his conduct related to these investment firms, Del Biaggio agreed to pay approximately $19.9 million in restitution.
According to court documents, Del Biaggio's actions related to the charged, fraudulent scheme ultimately caused $47 million in losses. His conduct related to the investment funds affected more than 75 investors some lost their life savings. Several of the victims spoke of their loss at the sentencing.
U.S. District Court Judge Charles R. Breyer handed down the sentence. Judge Breyer also sentenced the defendant to a three-year period of supervised release, and ordered him to pay a special assessment. Del Biaggio, who is out on bond, is scheduled to self-surrender on Jan. 8.
Scott Cacchione, Del Biaggio's co-defendant, is scheduled for sentencing on Sept. 29
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