A former Truckee man has been indicted in an alleged investment fraud scheme in which investors lost $1.7 million.
Patrick Slavin, 55, was arraigned Tuesday in federal court in Sacramento. A 21-count indictment charges him with mail and wire fraud for an investment scheme he allegedly ran from 2008 through 2016, according to a U.S. Attorney’s Office news release.
Slavin claimed to have developed a proprietary investment model that guaranteed returns of 12 to 18 percent that would be paid within one to two years of the investment, according to court documents. He persuaded some people to invest by leading them to believe that the money would be invested through a “social venture” fund or project that would earn returns by providing capital services to nonprofit organizations. After the investments were made, Slavin assured investors that the money was earning profits.
Offering these assurances, Slavin solicited additional investments and encouraged investors to roll over the previous investments. But he used a large portion of the investors’ money to pay back other investors or for his personal expenses and lost the rest in trading, the news release. Investors reportedly lost at least $1.7 million.
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The case resulted from an investigation by the Federal Bureau of Investigation.