SACRAMENTO -- A San Ramon man pleaded guilty Monday to falsely calling himself a day trader and defrauding investors out of more than $1.6 million, attorneys said.

Alfred John Schlette, 40, pleaded guilty to mail fraud charges after he convinced more than ten people to invest their money to be traded in the stock market, United States Attorney Benjamin B. Wagner said. The man guaranteed a 10 to 15 percent profit on investments he collected while calling himself a day trader. and told clients he invested funds on a day-to-day basis.

According to Wagner, Schlette never invested a dime of nearly $1.6 million in client funds, and instead spent the money on personal expenses and returns to prior investors, a bank record analysis showed. While the man had opened an investment account online, not a single trade has ever been performed on the account, Wagner said.

Schlette remains out of custody on $50,000 bond, and will return to court to receive his sentence June 16. He faces a maximum sentence of 20 years in prison, along with a $250,000 fine.

Contact Erin Ivie at eivie@bayareanewsgroup.com. Follow her at Twitter.com/erin_ivie.



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