Feds charge Silicon Valley financier with fraud

Prosecutors filed a single criminal charge against venture capitalist William "Boots" Del Biaggio III in San Francisco federal court on the same day the Securities and Exchange Commission filed a related lawsuit accusing the San Jose resident of using forged bank accounts as collateral for $45 million in loans.

The SEC also accused him of bilking investors out of nearly $20 million, while the criminal charge adds an additional $35 million in bank loans allegedly obtained with bogus collateral.

The U.S. attorney's office said Del Biaggio faces a maximum of 25 years in prison if found guilty, though he probably will be sentenced to substantially less than the maximum.

Both federal agencies accuse Del Biaggio, 41, of using the money to fund a lavish lifestyle that included "substantial gambling debts" and a $25 million stake in the Nashville Predators.

The SEC said Thursday that Del Biaggio already has settled the lawsuit by agreeing to let a judge "determine the amount of ill-gotten gains" and other penalties he'll have to repay.

"Mr. Del Biaggio is fully committed to continuing his efforts to cooperate with the investigation and to working in a responsible manner with all relevant authorities towards a satisfactory resolution of this matter," his lawyer, Eric MacMichael, said in a statement.