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.