Former Truckee resident Patrick Slavin was arraigned on Tuesday, July 25, in federal court for an alleged investment scheme he has been accused of running between 2008 and 2016.
Slavin was arrested on July 17 in Menlo Park. He faces 21 counts of wire and mail fraud for the scheme that cost investors at least $1.7 million according to a statement from the U.S. Department of Justice. If convicted of the charges, he could face up to 20 years in prison and a $250,000 fine, or twice the gross loss or gain from the scheme.
According to court documents, Slavin allegedly told investors that he could guarantee them safe and reliable returns so that they could focus giving their time back to their community. He reportedly met some investors through local religious communities, and told some that he was investing their funds with nonprofits.
The documents state that Slavin lost a substantial amount of the money he did invest between 2009 and 2016, except for in 2013 when he made minimal gains. He initially promised investors guaranteed annual returns of 12-18 percent, but used a significant amount of their money to pay past investors and cover his cost of living, according to the charges.
Slavin also reportedly failed to notify his investors that he was already in debt by hundreds of thousands, and eventually millions, of dollars with no way to repay the debt. All of the 21 wire and mail transfers in question originated in Truckee, and were made between 2012 and 2016.
Slavin is being held without bail until trial, according to a dentention order signed by Judge Carolyn Delaney on July 25.
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