Convicted broker sets up investment advisory

Convicted broker sets up investment advisory

Convicted broker sets up investment advisory Advisors who’ve been around long enough have probably seen it all, until now that is, and you’re not going to believe how one California man tried to reignite his career in the securities industry. 

Five years ago David S. Cacchione was sentenced to 60 months’ imprisonment for securities fraud and ordered to pay $50 million in restitution for his role in a $100 million fraud.

The Woodside, California, resident got out of jail June 9, 2014, but not before registering Montara Capital Management with the California Secretary of State. But that was only the start.

Once out, Cacchione filed an application with the SEC on behalf of Montara Capital Management asking to have the company registered as an investment advisor in the state of California and expected to raise $100 million within 120 days. 

Not too bad for a company doing business out of a UPS store mailbox and only days removed from the crowbar motel. 

We’re not sure if this is the craziest story WP’s ever reported on but it definitely ranks up there with some of the best of them. Imagine if this man, who’s repaid just $502 dollars of the $50 million restitution order, had actually been given SEC approval. It’s a really scary thought. 

Fortunately, the SEC isn’t as porous as we think it is, and tried to put the kibosh on Mr. Cacchione’s second chance to re-enter the securities business as an RIA.


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