Peninsula Man Sentenced To 3+ Years For Pandemic Relief Fraud: DOJ

SAN CARLOS, CA — A Peninsula man was sentenced to more than three years in federal prison Monday after he admitted to fraudulently obtaining pandemic relief loans and bilking investors out of more than $1 million, according to the U.S. Attorney's Office.

David Scott Cacchione, 59, of San Carlos was initially charged in a federal complaint filed in January. Cacchione pleaded guilty to one count of conspiracy to commit wire fraud, two counts of wire fraud and one count of tax evasion in August, prosecutors said.

According to the U.S. Attorney's Office, Cacchione defrauded $1.13 million from multiple investors, using the money on personal expenses and debts, and applied for an Economic Injury Disaster Loan in September 2020. In the application, prosecutors said he falsely claimed to have a company with $1 million in revenue and three employees, receiving nearly $150,000 in assistance that was instead used on personal expenses.

"The defendant made multiple misrepresentations in order to enrich himself," said Ismail J. Ramsey, U.S. Attorney for the Northern District of California. "He did so by convincing multiple individuals to invest in accounts receiveable that did not exist and by diverting disaster relief funds intended to help small businesses to a business that was a sham. My office will vigorously investigate and prosecute those who seek to defraud individuals and federal programs."

U.S. District Judge James Donato on Monday sentenced Cacchione to 40 months in federal prison and ordered him to pay more than $1.4 million in restitution. He was also sentenced to three years of supervised release and ordered to forfeit a $450,000 stake in a tech company.