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Money manager charged
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April 3, 2000: 4:48 p.m. ET
Cassandra Group manager, advisor to celebrities, charged with $6M fraud
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NEW YORK (CNNfn) - The U.S. attorney in Manhattan filed on Monday securities fraud charges against Dana Giacchetto, accusing the New York investment adviser of misusing money from several clients, including a "well-known rock band," to the tune of $6 million.
Giacchetto, whose client list at one time boasted young stars such as Matt Damon, Alanis Morissette, Leonardo DiCaprio, and Michael Ovitz, is charged with fraud and lying to the Securities and Exchange Commission. The authorities allege that Giacchetto misappropriated his clients' money he managed through Cassandra Group.
If convicted, Giacchetto faces a maximum sentence of ten years in prison for the securities fraud, and a fine that is the greater of either $1 million or double the gross gain or loss resulting from the crime, which is estimated to be up to $12 million in this case.
The U.S. attorney's office said Giacchetto and Cassandra "misappropriated at least $6 million that belonged to a number of his clients, including a well-known rock band and its members, a film production company, artists, actors, and persons in the advertising and publishing industry, as well as the pension accounts of these individuals."
According to the complaint, Giacchetto misused the funds by giving or lending money to third parties or to other clients.
 The complaint also charges that Giacchetto lied to SEC officials in December 1999 and in January 2000, saying that he provided an altered document.
Calls to Giacchetto seeking comment were not returned on Monday afternoon.
Giacchetto, 37, is president and founder of 10-year old Cassandra Group Inc., an investment advisory firm, which provides management services and advice on about $430 million for 305 clients, mostly artists and entertainers.
Giacchetto, a former rock musician, got his start by networking through the 1980s art world with painters such as David Salle and George Condo, as well as through contacts at record labels such as Matador and Nirvana's Sub Pop and in the movie industry; giving him a roster of contacts divided among the visual art, music and film industries.
But his relationships have turned sour recently. Giacchetto reportedly filed a suit recently against his former partners alleging that his business associates spread false statements to his clients prompting them to break business ties with him. According to the report, DiCaprio, star of the hit film "Titanic," was one of his clients. 
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