Manager to Settle Dispute With Cassandra Trustee

Hollywood talent manager Rick Yorn agreed Thursday to pay $610,000 to settle a 5-month-old financial dispute with the bankruptcy trustee liquidating Cassandra Group, the New York investment vehicle once owned by imprisoned money manager-to-the-stars Dana Giacchetto.

The deal settles allegations made in March by Cassandra trustee Robert L. Geltzer that Yorn had improperly received more than $1.3 million in loans and advances from Giacchetto.

Yorn, a partner in Michael Ovitz’s Artists Management Group, denied any wrongdoing, adding that he believed his financial transactions with Giacchetto were appropriate. But, Yorn added, he agreed to settle the case because of the “enormous amount of time and legal fees” that would be required to defend himself.

“The high cost of legally pursuing a bankruptcy case simply outweighs the end result, and ultimately, the settlement is more beneficial to everyone affected,” Yorn said.

According to a copy of the settlement, Yorn will pay $50,000 immediately, followed by another $50,000 payment by next Friday. The remaining $510,000 must be paid by Sept. 17. The money will go toward paying Cassandra creditors.

Giacchetto once boasted a client list that included stars Leonardo DiCaprio, Ben Affleck, Matt Damon, Cameron Diaz and Ben Stiller as well as Ovitz. Some clients, such as DiCaprio, are managed by Yorn.

Giacchetto now is serving a 57-month sentence in federal prison in Pennsylvania for stealing about $10 million from clients, after pleading guilty last year to one count of misappropriating funds.

Among the allegations made by Geltzer was that Yorn received $737,467 from Giacchetto in 1999, which Giacchetto represented as a sale of stock in a small entertainment company, Paradise Music & Entertainment.

Geltzer alleged that both Yorn and Giacchetto knew Cassandra was insolvent. The papers also allege that Yorn received four loans and advances for $606,521 in 1998 toward the purchase of a home, only $50,000 of which he returned.