Carlsbad Man Sentenced for Fraud, Elder Abuse

A Carlsbad man involved in a securities scam that defrauded more than 1,400 senior citizens of more than $191 million was sentenced to 15 years in state prison Wednesday. Larre Jaye Schlarmann pleaded guilty in Riverside County Superior Court to 10 felony counts that included money laundering and elder abuse.

Schlarmann, described by the Riverside County district attorney’s office as a “lesser participant” in the scam allegedly orchestrated by D.W. Heath and Associates, agreed to surrender his personal assets, worth about $1.2 million, for victim restitution. He also was ordered to pay an additional $117 million in restitution.

Prosecutors intend to proceed to trial against the other defendants, whose preliminary hearing is scheduled to begin today in Riverside, according to the district attorney’s office.