Alfred John Schlette Pleads Guilty to Ponzi Scheme

Alfred John Schlette of San Ramon, California pleaded guilty to charges of defrauding investors and misrepresenting himself as an intraday trader. Schlette allegedly stole over $1.6 million from investors.

Schlette pleaded guilty to nine counts of mail fraud after an indictment from a federal grand jury alleging that he never invested the money the investors gave him for day trading. Schlette defrauded at least ten investors,  making false statements about the supposed profitability of the investment programs he offered to his victims, according to case records .

Schelette allegedly told the investors that they could invest funds with him that would be pooled and used for day trading. He assured investors their money would yield returns of up to 15 percent, according to documents filed in his case.

Schelette also sent each investor monthly statements misrepresenting the returns on their  investments. Schelette admitted that he never invested the funds given by the investors, and used it for his personal expenses instead. The monthly statements Schelette used were reportedly from an educational stock trading tool and had nothing to do with Schelette’s investments.

The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.

Peiffer Wolf (1311 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.