San Carlos Man Sentenced: Over 3 Years in Prison for Fraud Scheme Involving $1 Million
A man from San Carlos has been sentenced to more than three years in federal prison for his involvement in fraud schemes that cheated investors and misused pandemic relief funds.
David Cacchione, 59, pleaded guilty to several charges, including conspiracy to commit wire fraud, wire fraud related to an investment scam, and tax evasion. On Monday, he was sentenced to 40 months in prison.
Prosecutors revealed that Cacchione, alongside a co-conspirator, deceived multiple investors by falsely claiming that their money would be used to purchase non-existent accounts receivable.
Instead of investing the money as promised, he misused the funds to cover personal expenses and pay back other victims. According to his plea agreement, he admitted that the total loss to victim investors exceeded $1.1 million.
In a separate scheme during the COVID-19 pandemic, Cacchione submitted an economic injury disaster loan application in September 2020.
He falsely reported that his company had $1 million in revenue and employed three people. Based on these false claims, he received a loan of $149,900, which he then used for personal expenses.
In addition to his prison sentence, Cacchione has been ordered to pay $1.4 million in restitution to his victims. He will also forfeit his $450,000 equity stake in a technology company.
This case highlights the serious consequences of fraud and the importance of accountability for those who exploit others for personal gain.