San Carlos Fraudster Who Cheated Investors Out Of More Than $1 Million Sentenced To Over Three Years In Federal Prison

Press Release

Defendant Also Admitted to Fraudulently Obtaining Pandemic Relief Funds

SAN FRANCISCO - David Scott Cacchione was sentenced today to 40 months in federal prison for conspiracy to commit wire fraud and wire fraud in connection with an investment fraud scheme and a false federal disaster loan application, and tax evasion. The sentence was handed down by the Honorable James Donato, U.S. District Judge.

Cacchione, 59, of San Carlos, was initially charged by complaint on Jan. 16, 2024, and by superseding information on Aug. 7, 2024. On Aug. 14, 2024, he pleaded guilty to all four counts in the superseding information - one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of tax evasion in connection with multiple schemes. According to his plea agreement, Cacchione admitted that he and an alleged co-conspirator defrauded multiple investors by convincing them that their money would be used to purchase accounts receivable that did not exist. Instead, Cacchione used the investor funds to pay personal expenses and to reimburse other victims. Cacchione admitted that victim investors were defrauded out of more than $1.13 million in this scheme. As detailed in court documents, in addition to the investment fraud scheme, Cacchione submitted an Economic Injury Disaster Loan application in September 2020 for a company that he falsely claimed had $1 million in revenue and three employees in the 12-month period prior to Jan. 31, 2020. Based on these false statements, Cacchione obtained a $149,900 loan that he used to pay personal expenses.

"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," said United States Attorney Ismail J. Ramsey. "My office will vigorously investigate and prosecute those who seek to defraud individuals and federal programs."

"David Cacchione treated other people's money as his own," said Federal Bureau of Investigation (FBI) San Francisco Special Agent in Charge Robert Tripp. "He broke promise after promise and paid his own personal expenses instead of investing his victims' money. Today, however, he learned a lesson in accountability. The FBI is committed to safeguarding the public from fraud schemes and will continue to work alongside our partners to bring perpetrators like Cacchione to justice."

"White collar crime is not victimless, and today's sentencing reinforces it does not go unpunished. Mr. Cacchione's multiple schemes victimized individual investors and preyed upon federal programs designed to help small businesses recover from dire natural disaster impacts," said IRS Criminal Investigation (IRS-CI) Oakland Field Office Acting Special Agent in Charge Michael Mosley. "IRS-CI stands up for individuals victimized by financial fraudsters and defends the sanctity of benevolent government programs by putting those who willfully abuse them in jail."

In addition to the 40-month prison term, Judge Donato also ordered defendant to pay more than $1.4 million in restitution, sentenced the defendant to a three-year period of supervised release, and ordered the defendant to forfeit his $450,000 equity stake in a technology company. Defendant has been in custody since Apr. 24, 2024, and will begin serving his sentence immediately.

The announcement was made by United States Attorney Ismail J. Ramsey, FBI Special Agent in Charge Robert Tripp, and IRS-CI Oakland Field Office Acting Special Agent in Charge Michael Mosley.

Assistant United States Attorney Garth Hire is prosecuting the case. The prosecution is the result of an investigation by the FBI and IRS-CI.

Updated November 4, 2024