- Personal Finance
William "Boots" Del Biaggio--Crook Alert!!
"Boots" Del Biaggio III
William "Boots" Del Biaggio Charged with Fraud
Former Silicon Valley venture capitalist and owner of the Nashville Predators (great choice of name for his team!) hockey team charged with stealing $25 million from investors and using it to pay off gambling debts and maintain his lavish lifestyle and McMansion in San Jose.
Is Mr. Del Biaggio going to jail? Very possibly. He faces a civil injunctive action of securities fraud by the S.E.C. Federal prosecutors filed a single criminal charge of falsifying documents to obtain $100 million in loans. Del Biaggio agreed Thursday to be barred permanenetly from serving as an investment adviser, according to Michael Dicke, associate regional director for enforcement of the S.E.C. in San Francisco.
The complaint said that since 2003 Del Biaggio has misappropriated $19 million from individual investors and used the money "as his personal checkbook."
In May Del Biaggio resigned as a general partner of Sand Hill Capital, a venture debt firm that he founded in Menlo Park, California. In June he filed for bankruptcy protection.
Del Biaggio is the co-founder, along with his father, of the Heritage Bank of Commerce in San Jose.
According to the S.E.C. complaint a friend at a San Francisco brokerage helped "Boots" carry out the scheme by sending him clients account statements which "Boots" doctored, replacing the clients' names and adddresses with his own.
It was interesting to see how easy it was for him to get all these fraudulent loans, Mr. Dicke said. "It's shocking in some ways that he was able to get $45 million in loans from a fairly simplistic fraud."
Mr. Del Biaggio faces imprisonment and fines. "We want the money to get back to the victims," Mr. Dicke said.
Based on NY Times article by Claire Cain Miller 12-05-08
"Boots" Del Biaggio Sentenced to 8 years
- NHL Team Owner Gets 8-Year Prison Sentence - Bankruptcy Beat - WSJ
William “Boots” Del Biaggio III was sentenced to eight-plus years in prison for bilking investors and banks out of millions of dollars to buy a stake in the Nashville Predators.