Bay Area Man Charged with Nine Counts of Mail Fraud

SACRAMENTO, CA—United States Attorney Benjamin B. Wagner announced today that a federal grand jury in Oakland returned a nine-count indictment charging Alfred John Schlette, 59, of San Ramon, California, with nine counts of mail fraud. The indictment alleges that 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 instead. The monthly statements he generated and sent to investors were from an educational stock trading tool and had no connection to any actual investments. As a result of his conduct, Schlette defrauded more than 10 investors of over $1 million.

Schlette was arrested yesterday and made his initial appearance today before U.S. Magistrate Judge Donna Ryu in Oakland.

This case is the product of an extensive/joint investigation by the Federal Bureau of Investigation and the Contra Costa County Sheriff’s Office. The United States Attorney’s Office for the Northern District of California was recused in the case, and it is being prosecuted by Assistant United States Attorney Jared C. Dolan from the Eastern District of California.

The maximum statutory penalty for a violation of mail fraud is 20 years of imprisonment and a fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges are only allegations, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.