Bay Area Man Sentenced to Prison for Investment Fraud
SACRAMENTO, CA—Alfred John Schlette, 60, of San Ramon, was sentenced today in San Francisco by Chief United States District Judge Claudia Wilken of the Northern District of California to three years and five months in prison for mail fraud, United States Attorney Benjamin B. Wagner announced. Schlette was also ordered to pay $1.7 million in restitution to more than 10 victims.
According to court documents, Schlette told individuals that they could invest funds with him that would be pooled and used for day trading. Schlette sent his investors monthly statements showing a significant return on each individual’s investment. In truth, Schlette never invested any of the money, using the funds on personal expenses. The monthly statements he generated and sent to investors were from an educational stock trading tool and had no connection to any actual investments.
This case was the product of an investigation by the Federal Bureau of Investigation and the Contra Costa County Sheriff’s Department. The United States Attorney’s Office for the Northern District of California was recused from the case. Assistant United States Attorney Jared C. Dolan from the Eastern District of California prosecuted the case in the United States District Court for the Northern District of California.