Venture capitalist William "Boots" Del Biaggio III, 41, of San Jose entered his plea before U.S. District Judge Charles Breyer at a hearing

former co-owner of the San Jose Sharks hockey team pleaded guilty Wednesday to securities fraud for bilking investors of millions of dollars in a series of schemes to help buy a stake in the NHL's Nashville Predators and to pay off gambling debts.
Venture capitalist William "Boots" Del Biaggio III, 41, of San Jose entered his plea before U.S. District Judge Charles Breyer at a hearing in San Francisco.Federal prosecutors said Del Biaggio defrauded numerous people to obtain and guarantee loans of about $100 million in connection with various ventures, including the purchase of a $25 million stake in the Predators. Del Biaggio improperly obtained and falsified brokerage account statements to give the appearance that he owned securities that he, in fact, did not own, authorities said. He then transmitted those falsified statements to lenders and pledged the securities as collateral, prosecutors said.
In addition to having once owned part of the Sharks, Del Biaggio co-founded San Jose's Heritage Bank of Commerce. Del Biaggio defrauded investors and lenders, using the proceeds to "finance a luxurious lifestyle" and as a "personal checkbook to pay home mortgage and decorating expenses, gambling debts, credit card bills and other personal and unrelated business expenses," the complaint said. Without admitting guilt, Del Biaggio has agreed to a settlement in a separate civil suit filed in December by the Securities and Exchange Commission. A judge is to determine "the amount of ill-gotten gains" and penalties at a later date, the SEC said.