Reed Slatkin

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Reed Slatkin
Born Flag of the United States United States
Occupation Investor
Net worth USD$

Reed Eliot Slatkin (born 22 January 1949 in Detroit, Michigan) was an initial investor and co-founder of EarthLink and the perpetrator of one of the largest Ponzi schemes in the United States since that conducted by Charles Ponzi himself.[1]

Contents

[edit] Biography

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Slatkin was an ordained Scientology minister[2] and long-time adherent of the group, as were many of his victims. Reed Slatkin was a Co-founder of EarthLink.[3][4]

[edit] Ponzi scheme

Slatkin's scheme collapsed in 2000 following complaints to the U.S. Securities and Exchange Commission from victims seeking to withdraw their money from the scheme. Since 1986 Slatkin approximately had raised some $593 million from over 500 wealthy investors. Creditor claims (investments net of payments) are approximately $255 million.[5]

Among his victims were many Hollywood celebrities, and he funnelled much of the money to the Church of Scientology and their related entities.[6]

The case was brought by the U.S. Attorney for the Central District of California in U.S. v. Reed E. Slatkin, CR 02-313 (C.D. Cal.).[7]

[edit] Guilty plea

Slatkin pled guilty to multiple counts and on September 2, 2003, he was sentenced to fourteen years in federal prison.[8] His Federal Bureau of Prisons registration number is 24057-112 and he was initially incarcerated at Taft Correctional Institution in Taft, California, but later at the Lompoc Federal Correctional Facility in Lompoc, California [9]

On November 8, 2006, the Associated Press reported that Scientology would pay back 3.5 million dollars of the money:

"Slatkin, who was once an ordained Scientology minister, paid $1.7 million from his scheme directly to Scientology groups, while millions of dollars more were funneled through other investors to groups affiliated with the church, bankruptcy trustee R. Todd Neilson said in court filings. Among the church groups to receive ill-gotten gains from Slatkin's scheme were Narconon International, the Church of Scientology Celebrity Centre International and the Church of Scientology Western United States, the filings said. The $3.5 million being returned by the church groups was the result of a negotiated compromise, Scientology attorney David Schindler and Alexander Pilmer, an attorney for Neilson, said." [10]

[edit] See also

Scientology Portal

[edit] References

  1. ^ CNBC. "Stealing $$$ From Scientologists and the Art of Fraud", American Greed, CNBC, Inc., February 20, 2008. 
  2. ^ Liz Pulliam Weston. The Basics: 7 reasons to fire your financial adviser. MSN Money. Microsoft. Retrieved on 2006-08-05.
  3. ^ Staff. "Earthlink co-founder charged with fraud, money laundering", CNN, Time Warner, March 27, 2002. Retrieved on 2008-06-12. 
  4. ^ Tkacik, Maureen. "EarthLink Co-Founder Slatkin Admits to Fraud in Ponzi Scheme", Wall Street Journal, March 27, 2002. Retrieved on 2008-06-11. 
  5. ^ Slatkin Trustee Report, December 2001, by R. Todd Neilson
  6. ^ Reckard, E. Scott (2006-11-08), “Scientology groups to pay back $3.5 million”, Los Angeles Times: C1, <http://pqasb.pqarchiver.com/latimes/access/1158248221.html?dids=1158248221:1158248221&FMT=ABS&FMTS=ABS:FT&type=current> . Full online version at The Rick A. Ross Institute
  7. ^ http://www.usdoj.gov/usao/cac/pr2002/057.html
  8. ^ http://www.usdoj.gov/usao/cac/pr2003/116.html
  9. ^ Federal Bureau of Prisons
  10. ^ http://www.mercurynews.com/mld/mercurynews/news/local/states/california/northern_california/15963877.htm

[edit] External links

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