According to the Justice Department, Schwartz admitted to withdrawing approximately $4.8 million belonging to Morissette without the singer's knowledge or authorization, falsely labeling the withdrawals as "sundry/business expenses" on accounting records. When confronted about the missing cash, Schwartz lied and claimed hat the money was an investment in illegal marijuana "grow" businesses.
Schwartz also admitted to embezzling more than $1 million from another client, and another $737,000 from a third client.
"Mr. Schwartz was hired to protect his clients' money by managing it professionally, but instead misappropriated millions to enrich himself," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "This case should serve as a warning that there are serious consequences for those who abuse their positions of trust to embezzle funds."
Alanis Morissette in recent years
Alanis Morissette in recent years
Singer Alanis Morissette, who was inducted into the Canadian Music Hall of Fame, poses backstage at the 2015 Juno Awards in Hamilton, Ontario, March 15, 2015. REUTERS/Fred Thornhill (CANADA - Tags: ENTERTAINMENT)
Musician Alanis Morissette arrives at the 2015 MusiCares Person of the Year tribute honoring Bob Dylan in Los Angeles, California February 6, 2015. REUTERS/Mario Anzuoni (UNITED STATES - Tags: ENTERTAINMENT)
LOS ANGELES, CA - NOVEMBER 22: Alanis Morissette and Mario Treadway arrives at the 2015 American Music Awards at Microsoft Theater on November 22, 2015 in Los Angeles, California. (Photo by Steve Granitz/WireImage)
Singer Alanis Morissette poses on arrival at the 2011 American Music Awards in Los Angeles November 20, 2011. REUTERS/Danny Moloshok (UNITED STATES - Tags: ENTERTAINMENT) (AMA-ARRIVALS)
Recording artist Alanis Morisette arrives at The 2015 MusiCares Person Of The Year honoring Bob Dylan held at the Los Angeles Convention Center. (Photo by Frank Trapper/Corbis via Getty Images)
LOS ANGELES, CA - FEBRUARY 06: Alanis Morisette performs onstage at the 25th anniversary MusiCares 2015 Person Of The Year Gala honoring Bob Dylan at the Los Angeles Convention Center on February 6, 2015 in Los Angeles, California. The annual benefit raises critical funds for MusiCares' Emergency Financial Assistance and Addiction Recovery programs. For more information visit musicares.org. (Photo by Lester Cohen/WireImage)
MILAN, ITALY - JULY 18: Alanis Morisette performs on stage at Sound Hippodrome on July 18, 2012 in Milan, Italy. (Photo by Pier Marco Tacca/Redferns via Getty Images)
(GERMANY OUT) Canadian-American singer-songwriter Alanis Morisette during a concert at the Congress Centrum Hamburg (CCH) (Photo by JazzArchivHamburg/ullstein bild via Getty Images)
LOS ANGELES, CA - NOVEMBER 20: Musician Alanis Morisette arrives for the 2011 American Music Awards held at Nokia Theater at L.A. Live on November 20, 2011 in Los Angeles, California. (Photo by Albert L. Ortega/Getty Images)
ï¿½2010 RAMEY PHOTO NO SPAIN/NO ITALY Los Angeles, October 7th 2010 ALANIS MORISETTE and husband MARIO TREADWAY were looking very happy after attending child birth preparation classes in Los Angeles, CA. PGpg68 (Photo by Philip Ramey/Corbis via Getty Images)
Alanis Morisette Los Angeles April 1 2009 Alanis Morisette strolling in Santa Monica ID revpix90401508 (Photo by Philip Ramey/Corbis via Getty Images)
OTTAWA, ON - JUNE 04: Singer Alanis Morisette performs the Canadian and American National Anthems prior to the start of Game Four of the 2007 Stanley Cup finals between the Anaheim Ducks and the Ottawa Senators on June 4, 2007 at Scotiabank Place in Ottawa, Canada. (Photo by Jim McIsaac/Getty Images)
Schwartz faces a maximum of 23 years in prison once he pleads guilty, though the plea deal is suggesting a sentence in the four- to six-year range. A judge will ultimately determine his actual sentence.