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Alanis Morissette

Alanis Morissette’s former business manager has admitted embezzling more than $7m (£6m) from the singer and other celebrities and agreed to plead guilty to federal charges, prosecutors have said.

Jonathan Todd Schwartz, 48, of Los Angeles, was charged with wire fraud and filing a false tax return for failing to report the embezzled funds.

Schwartz admitted stealing nearly $5m from Morissette between May 2010 and January 2014. He used the money personally and falsely listed the cash withdrawals as “sundry/personal expenses” to cover up the crime.

When confronted about the theft, Schwartz lied and said he invested the money in an illegal marijuana business, prosecutors said.

Schwartz also admitted to stealing $2.3m from five other clients who were not named in court documents or disclosed by lawyers.

Nathan Hochman, defending, said Schwartz had cooperated with investigators and accepted responsibility.

His plea deal calls for a sentence between four and six years in a federal prison, though he could be sentenced to up to 23 years.

Schwartz had offered financial guidance to some of the biggest stars while at GSO Business Management, which has worked with entertainers such as Katy Perry, 50 Cent and Tom Petty.

Schwartz, who no longer works there, was said to represent Beyoncé and Mariah Carey, who both appeared at a fundraiser last year in support of a heart disease charity he founded.

The embezzlement was discovered after Morissette took her business elsewhere. Her new financial manager discovered millions of dollars missing and contacted GSO, according to lawsuits filed against Schwartz.

GSO reviewed Schwartz’s work and discovered the other thefts, said GSO’s lawyer, 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 had since repaid the money he stole from clients. The firm’s pending lawsuit against Schwartz stated he used the money to fund a lavish lifestyle that included a $50,000 trip to Bora Bora and a $75,000 debt at a Bahamas casino.

Morissette settled her lawsuit against Schwartz and the firm, according to a joint statement issued last year. Her publicist had no comment Wednesday.

Schwartz is scheduled to appear in court on 1 February on the criminal charges.