Giacchetto Still in Limbo
Yesterday Dana Giacchetto was supposed to be sentenced for securities fraud. He wasn't, and remains in federal prison in Brooklyn. The new date is February 7.
Giacchetto pled guilty to fraud on August 2. His attorney, Ronald P. Fischetti, was supposed to supply U.S. Attorney David Lewis with an explanation of how Giacchetto lost more than $9 million of his clients' money. An accounting was supposed to be forthcoming. It never came.
Yesterday, sources at the SEC told me that they were planning to depose Giacchetto in the next few weeks and that he would probably be liable for the missing funds. This would be in addition to his 3-year jail term. Everyone — including the SEC and the U.S. Attorney — expected Giacchetto to finally be sentenced yesterday. But at the last minute, a receiver and bankruptcy court representative intervened, complaining that they still had no accounting from Fischetti.
And the reason: My guess is that Giacchetto has no idea what happened and no clue where the money went. So Feb. 7 now has more importance and drama. In the meantime, all parties would be wise to read our current series on Giacchetto. Lots of surprises.