Regulator Bars Giacchetto From Investment Business

Money manager-to-the-stars Dana Giacchetto, already serving a 57-month sentence for stealing nearly $10 million from client accounts, was permanently barred from the investment business Tuesday by the Securities and Exchange Commission.

The action comes in the wake of a judgment in July settling a civil fraud suit brought by the SEC against Giacchetto. That suit came on top of federal criminal charges that led to Giacchetto pleading guilty in August 2000 to a count of misappropriating client money.

Federal Judge Laura Taylor Swain in New York also ordered Giacchetto to disgorge $14.4 million in improper gains and interest, as well as pay a $100,000 fine in the civil case.

SEC officials said it remains unclear how much money, if any, they will collect from Giacchetto.

He has claimed in court papers that he has little money and, according to the SEC, has been uncooperative with officials trying to locate funds. In addition, Giacchetto’s former investment vehicle, Cassandra Group, is being liquidated under Chapter 7 of the U.S. Bankruptcy Code.

But SEC senior trial counsel Alexander Vasliescu said the order gives the SEC the right to recover funds if additional assets of Giacchetto are found.

Giacchetto once boasted a client list that included stars Leonardo DiCaprio, Ben Affleck, Matt Damon, Cameron Diaz, Ben Stiller and such leading Hollywood executives as Michael Ovitz.

But government prosecutors said he committed “outright theft” to fund a lavish lifestyle that included $120,000 in hotel bills, $100,000 in airline tickets, $55,000 in restaurant tabs and $8,000 in helicopter flights.

In February, Giacchetto received the 57-month federal prison sentence. He is serving his sentence in Allenwood, Pa.

Giacchetto represented himself in the matter. Representatives for Giacchetto could not be reached for comment.