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Technology Stocks : John, Mike & Tom's Wild World of Stocks -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (1577)	8/4/2000 12:08:15 AM
From: John Pitera	Read Replies (1) \| Respond to of 2850

mike, thanks for the CAMP report. I sold some CAMP in mid June, (had no idea it would get up to it's mid july highs) but think it good to be buying a bit down here.

To: wlheatmoon who wrote (1577)	8/4/2000 12:12:11 AM
From: John Pitera	Respond to of 2850

This guy really crashed and burned. August 3, 2000 -------------------------------------------------------------------------------- Broker to the Stars Admits to Theft, Lying By COLLEEN DEBAISE Dow Jones Newswires NEW YORK -- It could be the script for a Hollywood movie: High-profile broker with big-name acting clients swindles them out of $9 million after adopting their glamorous, club-hopping lifestyle. In this case, some actors wouldn't have to read the script. They already know the story by heart, because it happened to them -- and it doesn't have a happy ending. The real-life drama played out in federal court here when celebrity financial adviser Dana Giacchetto -- who at one time went nightclubbing with his Hollywood A-list clients, including Leonardo DiCaprio, Courteney Cox Arquette and Ben Affleck -- pleaded guilty to criminal securities-fraud charges. Hollywood Broker Giacchetto Pleads Not Guilty to Charges (May 4) Former Adviser to Celebrities Indicted on Expanded Charges (April 25) Giacchetto, Financial Adviser to Stars, Is Charged With Securities Fraud, Lying (April 4) At a hearing, Mr. Giacchetto, 37 years old, admitted stealing the clients' money held by his New York firm, Cassandra Group. "This is a terrible day of my life," Mr. Giacchetto told U.S. District Judge Robert P. Patterson, choking back tears. "Ever since I was a little boy, I always thought I was on this planet to do good things." Mr. Giacchetto is being held in a New York jail pending sentencing, scheduled for Nov. 3. He faces as many as five years in prison, plus fines totaling at least $250,000 and restitution. A federal grand jury indicted Mr. Giacchetto in April on charges he pilfered as much as $9 million from client accounts, allegedly using the cash to cover the rent on his Manhattan loft, pay restaurant bills and otherwise finance a lavish lifestyle. Mr. Giacchetto has been detained since April, when his bail was revoked after federal prosecutors said he purchased airline tickets and altered his passport in an apparent attempt to leave the U.S. Mr. Giacchetto, the sole owner and president of Cassandra Group, had built his celebrity clientele by portraying himself as a conservative investor who could speak the language of the entertainment community. But his reputation as Hollywood's financial guru crashed earlier this year as news broke that many of his star clients had deserted him and that the Securities and Exchange Commission, as well as the Manhattan U.S. Attorney's Office, had begun investigating his activities. The SEC has filed its own civil charges against Mr. Giacchetto, alleging the money manager made $20 million worth of unauthorized transfers from clients' accounts. The agency said Cassandra Group turned into "a giant asset-kiting scheme," as Mr. Giacchetto allegedly began to pay complaining clients with funds stolen from other clients. The SEC case, filed in New York federal court in April, is pending. Federal authorities allege Mr. Giacchetto tried to conceal the fraud by telling clients that he had invested their money in securities or in private placements, when in reality such investments were never made. He allegedly provided false order tickets and portfolio statements to some clients who inquired about investments. Cassandra Group last month voluntarily filed for Chapter 7 bankruptcy protection in New York bankruptcy court. According to court papers, the firm lists assets of less than $50,000. A 16-page list of unsecured creditors reads like credits at the end of a movie, with names such as Cameron Diaz and Matt Damon populating the roster. The SEC estimated that during the past year, Cassandra Group managed 305 client securities portfolios with an aggregate market value of more than $100 million. Mr. Giacchetto's success in luring Hollywood stars was attributed to his ability to schmooze with clients, often at the hottest nightspots. In addition, other business relationships lent Mr. Giacchetto an air of credibility. In 1998, he formed a separate joint venture with Chase Manhattan Corp.'s private-equity arm. But Chase soon began to have worries about its partner and ended its relationship with Mr. Giacchetto in September. Many of the broker's celebrity clients began to distance themselves from him during the same period. Chase wasn't named in either the criminal or civil actions. A spokeswoman for Chase declined to comment. Mr. Giacchetto told Judge Patterson he named his firm after the prophetess Cassandra, who foretold the fall of Troy. Mr. Giacchetto explained that he thought the name was appropriate for an investment-advisory firm. Now, however, he said he sees it as "perhaps even more fitting for someone who's contemplating a long time in prison." Write to Colleen DeBaise at colleen.debaise@dowjones.com