Indictment Details Spending Spree of Celeb Money Manager Giacchetto

Celebrity financial advisor Dana Giacchetto, once touted as a conservative money manager, allegedly squandered client money on $120,000 in hotel bills, $100,000 in airline tickets, $8,000 in helicopter travel and $55,000 in restaurant bills, including several tabs totaling $15,000 or more.

The allegations are in a federal indictment handed up Tuesday in New York that largely mirror financial fraud charges filed against Giacchetto earlier this month. The indictment details the lavish spending spree that allegedly helped topple the once-hot money manager.

Giacchetto, 37, built a reputation as the financial investment guru to Hollywood’s hot young stars, befriending such celebrities as Leonardo DiCaprio, Cameron Diaz and Courteney Cox Arquette as well as ingratiating himself to such established Hollywood figures as talent manager Michael Ovitz.

Early this month, Giacchetto was charged with three criminal counts stemming from his alleged looting of at least $6 million from clients.

Authorities allege Giacchetto routinely requested funds from client accounts at brokerage Brown & Co., then deposited checks made out to his celebrity clients into his banking account at Boston’s U.S. Trust, now Citizens Bank.

Tuesday’s indictment boosts the amount of misappropriated funds to at least $9 million, including $750,000 from rock group Phish. With the new indictment, which supersedes the previous charges, Giacchetto now faces five criminal counts and a maximum of 35 years in prison.

Giacchetto’s lawyer, Andrew Levander, did not return calls seeking comment.

Authorities said, however, that they won’t know exactly how much is missing until accountants are able to fully examine Giacchetto’s books. They note that Giacchetto would frequently shift money in and out of accounts, often replenishing money allegedly taken from one client with money taken from another.

According to the indictment, the $120,000 in hotel bills includes one $80,000 tab for a set of 10 suites at an unnamed Hollywood hotel. Former Giacchetto associates and sources familiar with the legal case identified the hotel as the Chateau Marmont.

They added that they believe Giacchetto rented the suites for himself and friends to coincide with his being honored in June by Sweet Relief, a charity for musicians with health problems, in a party at the Hollywood Athletic Club attended by DiCaprio and other celebrities.

Other expenditures listed in the indictment are $30,000 for stereo and computer equipment, artwork and clothing; a $90,000 donation to the New York Arts Academy; and a $5,000 donation to the New York Police Scholarship Foundation. He also spent $12,000 to lease a new Mercedes Benz for an unidentified law enforcement officer.

Giacchetto initially was released on a $1-million bond after the first charges were filed, but was arrested less than a week later at Newark (N.J.) International Airport holding a passport he had allegedly doctored, $4,000 in cash and 80 airline tickets worth $44,000.

At the time he was arrested, Giacchetto had surrendered his passport to federal officials and was under tight travel restrictions.

Tuesday’s indictment adds to Giacchetto’s charges one count of illegally altering his passport. According to the indictment, Giacchetto removed a page from an expired passport that included the expiration date, then altered the passport to make it appear as if it expires in October 2002.