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Press Release

San Carlos Resident Charged With Investment Fraud Scheme

For Immediate Release
U.S. Attorney's Office, Northern District of California
David Scott Cacchione Allegedly Targeted Bay Area Residents with False Promises of High Returns through a Purported “Accounts Receivable Factoring Program”

SAN FRANCISCO – David Scott Cacchione was arrested and has been charged by criminal complaint with conspiring to commit wire fraud in connection with an investment fraud scheme, announced United States Attorney Ismail J. Ramsey, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and IRS Criminal Investigation (CI) Oakland Field Office Acting Special Agent in Charge Michael Mosley.

According to the complaint, Cacchione, 59, of San Carlos, worked with another person to solicit investors in what they called an “Accounts Receivable Factoring Program.” The complaint alleges Cacchione and an unnamed co-conspirator told victims that investment funds would be used to purchase investment grade accounts receivable, and that investors would be repaid once the receivables were paid. According to the complaint, investors were promised as much as 2 percent per month in interest on the investment and were told that Cacchione himself was a large investor in the program.

The complaint alleges these representations were false and the investment funds were not used to purchase accounts receivables. From at least November 2021 through September 2022, at least four victims were cheated out of a total of about $1.1 million, according to the allegations. The complaint also states that, instead of investing the money as promised, Cacchione and his co-conspirator spent the money on personal and living expenses. The criminal complaint charges Cacchione with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 and 18 U.S.C. § 1343.

Cacchione was arrested on January 16, 2024, and made his initial appearance in federal court in San Francisco on January 17, 2024. Cacchione remains in custody pending further proceedings in the case. Cacchione’s next scheduled appearance is at 9:30 a.m. on January 19, 2024, for a detention hearing before U.S. Magistrate Court Judge Lisa J. Cisneros.

A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of twenty years in prison and a fine of $250,000, plus restitution if appropriate, for a violation of 18 U.S.C. § 1349. 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.

Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Aarian Beiti. The prosecution is the result of an investigation by CI and the FBI.

Updated January 22, 2024