The manager of rocker Alanis Morissette, a Mr. Schwartz, admitted that between May 2010 and January 2014 he withdrew about $4.8 million from Morissette’s account without her knowledge. He also admitted that he labeled the unauthorized cash withdrawals as “sundry/personal expenses” and embezzled more than $1.7 million from one other unidentified celebrity and a sports figure.
According to Deirdre Fike, the assistant director in charge of the FBI office in Los Angeles:
“Mr Schwartz was hired to protect his clients’ money by managing it professionally, but instead misappropriated millions to enrich himself,”
Morissette, who filed a lawsuit against Schwartz in May, said her former manager had cost her $15 million overall both through theft and other malfeasance.
She said she fired Schwartz in March after he failed to clearly explain her finances.
According to GSO Business Management, which employed Schwartz and has also filed a lawsuit against him, he maintained a lavish lifestyle that included a $50,000 vacation to the Pacific Island of Bora Bora and a $75,000 debt from a casino.
Schwartz on February 1 is expected to formally enter his guilty plea to two felony charges of wire fraud and filing a false tax return which makes him technically facing up 23 years in prison.
The plea deal states that a sentence of four to six years in prison will be considered by the judge.
Written by Clement Oluwasegun