Alanis Morissette needed to swallow a jagged little monetary capsule after she discovered her former enterprise supervisor admitted in courtroom papers filed Wednesday in Los Angeles that he embezzled greater than $6.5 million from his shoppers.
Of that quantity, about $four.eight million got here from Morissette. The ex-enterprise supervisor faces years in jail as he labored to simply accept a plea cope with federal prosecutors.
“Cash managers have fiduciary and ethical duties to their shoppers that start with preserving shopper belongings and never utilizing that cash to line their very own pockets,” U.S. Lawyer Eileen M. Decker stated.
“This defendant violated this primary precept, after which engaged in additional legal conduct by trying to cover his unwell-gotten good points from the Inner Income Service. Regardless of these efforts, nevertheless, the defendant will now face critical penalties for victimizing his shoppers and American taxpayers,” she stated.
Jonathan Todd Schwartz, forty eight, who lives in Playa Vista however was dwelling in Agoura Hills on the time of the offenses, faces federal wire and tax fraud fees for failing to reveal the embezzled funds to the Inner Income Service, in accordance with the U.S. Lawyer’s Workplace.
Schwartz is predicted to make his preliminary look in Los Angeles federal courtroom Feb. 1. As soon as he pleads responsible to the fees which were filed on this case, Schwartz will face a attainable most penalty of 23 years in federal jail.
Whereas the plea settlement contemplates a sentence of about 4 to 6 years, the precise sentence might be decided by the decide that hears the case, the U.S. Lawyer’s Workplace famous.
Schwartz was a member of GSO Enterprise Administration LLC, a Sherman Oaks- based mostly enterprise administration agency that gives monetary steerage to shoppers, together with managing financial institution accounts, offering accounts payable providers, and getting ready brief- and lengthy-time period budgets, prosecutors stated.
As a part of his plea settlement, Schwartz admitted that he took shoppers’ cash for himself and falsified account data to hide the embezzlement of shopper funds.
Schwartz acknowledged that between Might 2010 and January 2014, he withdrew about $four.eight million belonging to Morissette with out her information or authorization, in line with the doc.
Schwartz additional admitted that he falsely labeled the unauthorized money withdrawals as “sundry/private bills” on the accounting data maintained for the Canadian-American various rock singer and songwriter. “Jagged Little Capsule” was an enormous hit album for Morissette in 1995.
When confronted concerning the lacking funds, Schwartz said that the cash was an funding in unlawful marijuana “develop” companies, a press release Schwartz has now admitted was false.
Within the plea settlement, Schwartz additionally admits that he embezzled greater than $1 million from one other shopper —…