It’s not easy being a manager of a successful celebrity, especially a musician. However, as it turns out, it’s also not easy being a musician who has a financial manager they cannot trust. Unfortunately for Alanis Morissette, the famous alternative rock diva, she found out about her faulty manager when it was too late.
Jonathan Todd Schwartz, Morissette’s former manager, has admitted embezzling more than $7 million from the noted songstress as well as from some other celebrities. According to the prosecutors, he has agreed to plead guilty to federal charges.
The 48-year-old Schwartz was charged with wire fraud and filing a false tax return for failing to report the embezzled funds. He admitted to stealing approximately $5 million from the “Ironic” singer between May 2010 and January 2014, which he used personally. In order to cover up the crime, he falsely listed the cash withdrawals as “personal expenses.” When confronted, the bad manager lied and said he invested the money in an illegal marijuana business, the prosecutors explained. Alas, Morissette was not the only one who got played by the manager, as he has also admitted to stealing $2.3 million from five other A-list clients. These celebrities were not disclosed by lawyers nor were they named in court documents.
Schwartz’s attorney, Nathan Hochman, revealed that his client has cooperated with investigators and accepted full responsibility for his actions. Hochman asked for a plea deal for his client, which would involve 4-6 years in a federal prison. However, Schwartz could end up with a sentence as long as 23 years.
The accused manager had previously worked at GSO Business Management, which has worked with some of the biggest names in the entertainment industry. Therefore Schwartz offered financial guidance to the likes of Katy Perry, Tom Petty, 50 Cent, and others. After leaving his position in GSO Business Management, Schwartz went on to represent Mariah Carey and Beyoncé, who both attended a fundraiser last year in support of a heart disease charity he founded. Whether he embezzled money from the charity fund as well was not discussed.
The embezzling manager’s dirty little secret was discovered when Morissette got a new financial manager who discovered that millions of dollars were missing and contacted GSO. Chris Reeder, GSO’s legal representative, reviewed Schwartz’s work and discovered other thefts. He explained that the company is “very happy that their former employee is being brought to justice and held accountable for his actions.” Since Schwartz’s arrest, GSO has repaid the money he stole from their clients.
As for the “You Oughta Know” singer, she settled her lawsuit against her former financial manager and GSO Business Management.
Schwartz is scheduled to appear in court on 1 February.