| FOR IMMEDIATE RELEASE December 4, 2008 WWW.USDOJ.GOV/USAO/CAN |
SAN FRANCISCO – United States Attorney Joseph P. Russoniello announced that the United States has filed an information in San Francisco charging William “Boots” Del Biaggio, III, of San Jose, California, with one count of securities fraud.
According to the information, Del Biaggio, 41, is alleged to have defrauded multiple parties to obtain and guarantee loans of approximately $100 million in connection with various ventures, including the purchase of an interest in a major national sports league franchise. The information charges that Mr. Del Biaggio improperly obtained and falsified brokerage account statements to give the appearance that he owned securities that he, in fact, did not own. He then allegedly transmitted those falsified statements to lenders and guarantees and purported to pledge the securities as collateral.
Separately today, the Securities and Exchange Commission filed a civil complaint against Mr. Del Biaggio arising out of some of the same conduct alleged in the information.
“As we have seen with the recent financial crisis, the integrity of the lending system is an essential part of our economy,” Russoniello said. “Whether buying a family home or an NHL hockey team, borrowers must be truthful with their lenders. Where there is fraud in that process, we will pursue it.”
The date for Del Biaggio’s initial court appearance has not been set.
The maximum statutory penalty for securities fraud in violation of 18 U.S.C. section 1348 is 25 years imprisonment and a fine of $250,000 or up to twice the defendant’s gain or the victims’ loss, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Timothy Crudo is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Ponly Tu. The prosecution is the result of an investigation by the Federal Bureau of investigation and the Securities and Exchange Commission.
Please note, an information contains only allegations against an individual and, as with all defendants, Del Biaggio must be presumed innocent unless and until proven guilty.
Further Information:
Case #: CR 08-0874 CRB
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