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'Money manager to the stars' to plead guilty to fraud

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NEW YORK (CNNfn) -- Federal law enforcement sources told CNN-fn that Dan Giacchetto, the infamous "money manager to the stars," will plead guilty to federal charges of stock fraud Wednesday.

In April, federal prosecutors in Manhattan charged that Giacchetto, 37, looted more than $6 million from clients, illegally shifted more than $20 million between client accounts, and lied to securities investigators about financial problems at his company, the Cassandra Group.

Although prosecutors would not identify which clients lost money, Giacchetto has listed Matt Damon, Ben Stiller and the rock group Phish among his clientele. The Cassandra Group managed more than $100 million for 305 clients in 1999, according to records filed with the Securities and Exchange Commission. Giacchetto also served as a financial adviser to Leonardo DiCaprio.

He was initially released on $1 million bail, but in mid-April he was arrested at the Newark International airport, apparently trying to flee the country. When FBI agents nabbed him and his girlfriend as they got off a plane from Las Vegas, Giachetto had more than $4,000 in cash and 80 first-class tickets to dozens of international destinations including Rome, Singapore, and Frankfurt.

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