Maguire pays up to avoid litigation
NEW YORK -- "Seabiscuit" star Tobey Maguire has returned nearly
$200,000 a bankruptcy trustee said was improperly given to him by his one-time
investment adviser. The 28-year-old actor is the latest celebrity to settle a
"fraudulent conveyance" lawsuit brought by a court-appointed trustee
overseeing the financial ruins of The Cassandra Group, which was once headed by
Dana Giacchetto, a former pal of Maguire and Leonardo DiCaprio who was
convicted of fraud and spent 28 months in federal prison. In August 2000,
Giacchetto pleaded guilty to defrauding his lesser-known clients of millions
and diverting the money to more famous clients like Maguire, Cameron Diaz and
Alanis Morissette. The celebrities apparently unwittingly believed the money
represented investment returns, TheSmokingGun.com reported. In the settlement
agreement, filed last week in U.S. Bankruptcy Court in New York, Maguire claims
he forked over $197,500 to "avoid the expense and delay of further
litigation." The actor's disbursement will be divvied up between
Giacchetto's numerous creditors.
Charles Mims
http://www.the-sandbox.org
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