David Scott Cacchione, a 59-year-old man from San Carlos, was handed a 40-month sentence in federal prison for committing wire fraud, conspiracy to commit wire fraud and tax evasion. U.S. District Judge James Donato passed down the sentence after Cacchione admitted guilt to the charges earlier this year, as reported by the United States Attorney’s Office for the Northern District of California.
The prosecution's case, led by Assistant United States Attorney Garth Hire, revealed that Cacchione and an accomplice duped investors out of more than $1.13 million by misleading them to invest in non-existent accounts receivable. Furthermore, he submitted a false Economic Injury Disaster Loan application, claiming his company made $1 million in revenue and employed three the year before January 31, 2020. Cacchione used the $149,900 loan for personal expenses, further entangling his web of deceit.
According to the U.S. Attorney's Office, "The defendant made multiple misrepresentations in order to enrich himself. He did so by convincing multiple individuals to invest in accounts receivable that did not exist and by diverting disaster relief funds intended to help small businesses to a business that was a sham." This sentiment echoed across the law enforcement communities involved in the case.
In addition to serving his prison term, Judge Donato mandated Cacchione to pay restitution exceeding $1.4 million and complete three years of supervised release after imprisonment. He must also forfeit his $450,000 equity stake in a technology company. Having been in custody since April 24, Cacchione will see his sentence commence immediately. The case is a product of investigations by the FBI and IRS-CI.
