Rattet to Spend Weekends in Jail : First Figure Sentenced in Intech Investment Scheme

The first man to be sentenced for his role in a high-pressure Newport Beach-based telephone sales scheme that cost investors $2 million was ordered Monday to spend weekends in jail.

Mark Rattet, 29, was sentenced to 10 years for his involvement as a salesman in the Intech Investment Corp. swindle. But Chief U.S. District Judge Manuel Real ordered Rattet to serve 60 days in a penal institution--on weekends--and suspended the remainder of the sentence.

Rattet was one of six men indicted in the precious-metals investment scam. The alleged mastermind of the scheme, Matthew A. Valentine, has been convicted and is scheduled to be sentenced April 4.

Assistant U.S. Atty. Terree A. Bowers, chief of the major frauds section, recommended some jail time for Rattet while acknowledging that he was the first defendant to admit his guilt. He also provided “valuable assistance” to federal investigators, according to court papers.

Rattet was “manipulated” by others and realized belatedly that the enterprise was criminal, “but by then the crime was already committed,” said his attorney, Errol H. Stambler.

400 Investors Victimized

The Intech scheme victimized about 400 investors. Prosecutors contend that the classic “boiler room” operation preyed on widows, the elderly and disabled, among other victims.

The firm operated from late 1984 to early 1986. Fast-talking salesmen with a high-powered pitch induced clients across the country to send checks and precious metals to open accounts for trading.

Intech agents promised profits of up to 625% and told investors that there was little or no risk.

But when clients sought to withdraw funds, Intech officials stalled. And those clients whose accounts fell in value were required to provide assets--such as the Oriental rug and automobile a Long Beach woman turned over--according to prosecutors.

In early 1986, pressed by falling prices of precious metals, Valentine closed the Newport Beach operation and opened up a short-lived firm called International Distribution Systems.

18-Month Investigation

The Intech principals were charged after an 18-month investigation by the Southern California Investment Fraud Task Force, which is made up of law enforcement and criminal justice officials from federal, state and local agencies.

Rattet had pleaded guilty to two counts of mail fraud.

“I’m very sorry sir,” Rattet told Real. “I wish that I was never involved.”

Real ordered Rattet on five years’ probation, during which he may not become involved in telemarketing ventures, must provide unspecified restitution, must submit to drug tests and must perform 2,000 hours of charity work.

Rattet was ordered to surrender March 12.