Chicago Man Pleads Guilty to Investment Fraud

SACRAMENTO, Calif. - Gary Klopfenstein, 62, of Chicago, Illinois, pleaded guilty today to committing wire fraud in relation to an investment scheme, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Klopfenstein served as the Chief Wealth Officer of a company called Zolla Financial, which was an investment company operated by individuals in Shasta County and Butte County. From approximately June 2019 through March 2020, Klopfenstein carried out a fraudulent scheme to steal investor funds from Zolla. Through false representations, Klopfenstein persuaded Zolla executives to invest $2.45 million of Zolla investor funds in purported short-term notes related to the purchase and sale of jet fuel, which they referred to variously as jet fuel notes, jet fuel contracts, and a gas lease investment. No such notes existed. Klopfenstein used the Zolla funds to pay personal expenses and invest in a real estate development.

This case is a product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew Thuesen is prosecuting the case. U.S. District Judge Troy L. Nunley is scheduled to sentence Klopfenstein on January 16, 2025. Klopfenstein faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court's discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.