Reed Slatkin

Infobox Celebrity
name = Reed Slatkin
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birth_place = USA
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occupation = Investor
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networth = USD$
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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.cite news| last =CNBC|title =Stealing $$$ From Scientologists and the Art of Fraud| work =American Greed|publisher =CNBC, Inc. | date =February 20, 2008| url =http://www.cnbc.com/id/23163763/site/14081545/| accessdate = ]

Biography

Slatkin was an ordained Scientology minister [cite web|url=http://moneycentral.msn.com/content/Retirementandwills/Createaplan/P124450.asp |title=The Basics: 7 reasons to fire your financial adviser |accessdate= 2006-08-05 |author=Liz Pulliam Weston |work= MSN Money |publisher=Microsoft] and long-time adherent of the group, as were many of his victims. Reed Slatkin was a Co-founder of EarthLink. [cite news | last = Staff | title = Earthlink co-founder charged with fraud, money laundering | work = CNN | publisher = Time Warner | date = March 27, 2002 | url = http://archives.cnn.com/2002/LAW/03/27/slatkin.charges/index.html | accessdate = 2008-06-12 ] [cite news | last = Tkacik | first = Maureen | title = EarthLink Co-Founder Slatkin Admits to Fraud in Ponzi Scheme | work = Wall Street Journal | date = March 27, 2002 | url = http://online.wsj.com/article/SB101718484270953360.html | accessdate =2008-06-11 ]

Ponzi scheme

Slatkin's scheme collapsed in 2000 following a civil action by John Poitras resulting in attachment of most of Slatkin's property. Since 1986 Slatkin approximately had raised some $593 million from over 500 wealthy investors. Creditor claims (investments net of payments) are approximately $255 million. [ [http://www.slatkinfraud.com/report/december_2001.htm Slatkin Trustee Report] , December 2001, by R. Todd Neilson]

Among his victims were many Hollywood celebrities, and he funnelled much of the money to the Church of Scientology and their related entities. [Citation | last = Reckard | first = E. Scott | title = Scientology groups to pay back $3.5 million | newspaper = Los Angeles Times | pages = C1 | date = 2006-11-08 | url = http://pqasb.pqarchiver.com/latimes/access/1158248221.html?dids=1158248221:1158248221&FMT=ABS&FMTS=ABS:FT&type=current . [http://www.rickross.com/reference/scientology/scien524.html Full online version] at The Rick A. Ross Institute]

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.).http://www.usdoj.gov/usao/cac/pr2002/057.html]

Guilty plea

Slatkin pled guilty to multiple counts and on September 2 2003, he was sentenced to fourteen years in federal prison.http://www.usdoj.gov/usao/cac/pr2003/116.html] His Federal Bureau of Prisons registration number is 24057-112 and he was initially incarcerated at the Taft Communitiy Correctional Institution in Taft, California, but later at the Lompoc Federal Correctional Institution in Lompoc, California. [ [http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=IDSearch&needingMoreList=false&IDType=IRN&IDNumber=24057-112&x Federal Bureau of Prisons ] ]

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." [http://www.mercurynews.com/mld/mercurynews/news/local/states/california/northern_california/15963877.htm]

ee also

*Charles Ponzi

References

External links

*cite news| last =CNBC|title =Stealing $$$ From Scientologists and the Art of Fraud| work =American Greed|publisher =CNBC, Inc. | date =February 20, 2008| url =http://www.cnbc.com/id/23163763/site/14081545/| accessdate =
* [http://www.sec.gov/litigation/litreleases/lr18323.htm Reed E. Slatkin sentenced to 14 years for running a $600 million Ponzi scheme and obstructing justice] . U.S. Securities and Exchange Commission Litigation Release No. 18323, September 4, 2003.
* [http://www.slatkinfraud.com/index.php Reed Slatkin Media Resource]
* [http://www.slatkin-investors.com The official bankruptcy site maintained by the trustee]
* [http://www.slatkininfo.com Bankruptcy site set up by a group of Slatkin investors]
* [http://www.slatkinfraud.com/75_final.htm#43 Top 75 Net gainers of Slatkin ponzi scheme]