By Robyn Collins
Alanis Morissette’s former business manager has admitted to embezzling more than $7 million and agreed to plead guilty to federal charges, prosecutors said Wednesday.
Jonathan Todd Schwartz, of Los Angeles, was charged with wire fraud and filing a false tax return and for failing to report the embezzled funds, reports Pollstar.
Schwartz admitted to stealing nearly $5 million from Morissette between May 2010 and January 2014. The stolen money was listed as “sundry/personal expenses.”
Originally, Schwartz lied and claimed that he invested the money in an illegal marijuana business. With his admission of guilt, he also revealed that he stole $2.3 million from five other clients who were not named in the court documents.
Defense lawyer Nathan Hochman said Schwartz has now fully cooperated with investigators and accepted responsibility.
According to his plea deal, the former manager could spend anywhere from four to six years in federal prison, although a judge could potentially sentence him up to 23 years based on the charges.
Schwartz worked at GSO Business Management, a firm that, according to its website, deals with entertainers such as Katy Perry, 50 Cent and Tom Petty.
The embezzlement was discovered when Morissette enlisted a new money manager. The new financial adviser discovered millions of dollars missing and contacted GSO, according to lawsuits.
GSO reviewed Schwartz’s accounts and found the other thefts, said GSO attorney Chris Reeder, who sued Schwartz after he was removed from the firm.
“This was shocking and disappointing,” Reeder said. “The company is very happy he’s being brought to justice and held accountable for his actions.”
Reeder said GSO has since repaid all the money he stole from clients.
Morissette settled with Schwartz and the firm, according to a joint statement issued last year.
Schwartz is scheduled to appear in U.S. District Court on February 1.