Reed Slatkin

From 1986 to 2001, Slatkin raised approximately $593 million from about 800 wealthy investors. Using the funds from later investors, he paid one group of early investors $279M on their original $128M investment, citing investment success without actually making most of the claimed investments. He also distributed millions in fees to associates as "consultants". An investigation by the U.S. Securities and Exchange Commission (SEC) shut down the scheme in 2001.{{cite web | url = http://www.slatkinfraud.com/report/december_2001.htm | title = First Interim Report of the Trustee and the Creditors Committee Under 11 U.S.C. §§ 1103, 1106(a)(3)-(4) | first = R. Todd | last = Neilson | date = December 17, 2001 | work = In re Reed E. Slatkin, Debtor (Bk. No. ND 01-11549-RR) | access-date = 2011-01-17 | quote = In 1975, Slatkin was ordained a minister in the Church of Scientology (the "Church" or "Scientology"). From 1974 through approximately 1984, Slatkin and his wife did volunteer work for the Church on a full time basis. ... It appears that most of Slatkin's early, as well as present, business associations relate to his affiliation with Scientology, and a large number of the present investors came to Slatkin for advice because of their mutual involvement with Scientology. }} In May 2001, the SEC shut down Slatkin's scheme by filing an enforcement action and obtaining a temporary restraining order freezing his remaining assets.{{Cite web | url=https://www.sec.gov/litigation/litreleases/lr16998.htm | title=Lr16998}} On the same day as the SEC action, the Federal Bureau of Investigation executed search warrants relating to Slatkin.

The SEC brought the civil case in SEC v. Slatkin, Civil Action No. 01-04823 (C.D. Cal.). The Central District of California brought the criminal case in U.S. v. Reed E. Slatkin, CR 02-313 (C.D. Cal.).{{cite web |url=http://www.justice.gov/usao/cac/pr2002/057.html |title=USAO/CDCA Press Release |website=www.justice.gov |access-date=15 January 2022 |archive-url=https://web.archive.org/web/20051227190657/http://www.justice.gov/usao/cac/pr2002/057.html |archive-date=27 December 2005 |url-status=dead}}

He funneled millions of dollars to the Church of Scientology and related entities, and many of his victims were Scientologists.{{Cite news | last = Reckard | first = E. Scott | title = Scientology groups to pay back $3.5 million | newspaper = Los Angeles Times | page = C1 | date = 2006-11-08 | url = https://pqasb.pqarchiver.com/latimes/access/1158248221.html?dids=1158248221:1158248221&FMT=ABS&FMTS=ABS:FT&type=current | archive-url = https://web.archive.org/web/20070927220934/http://pqasb.pqarchiver.com/latimes/access/1158248221.html?dids=1158248221:1158248221&FMT=ABS&FMTS=ABS:FT&type=current | url-status = dead | archive-date = September 27, 2007 }} Victims of his scheme include actors Joe Pantoliano, Anne Archer, Giovanni Ribisi, producers Art Linson and Armyan Bernstein, film composer Mark Isham, and commentator Greta Van Susteren.{{cite web |title=Fixer-uppers and fishy deals |url=http://www.mailtribune.com/article/20020127/news/301279999 |first=Greg |last=Stiles |publisher=Mail Tribune |date=January 27, 2002}}

Slatkin pleaded guilty to mail fraud, wire fraud, money laundering, and obstruction of justice{{cite web |url=http://www.usdoj.gov/ust/eo/public_affairs/annualreport/docs/ar2002.pdf |title=United States Trustee Program Annual Report of Significant Accomplishments: Fiscal Year 2002 |access-date=2009-03-09 |publisher=United States Department of Justice |pages=33–34 |quote=The Woodland Hills office obtained appointment of a Chapter 11 trustee in the bankruptcy case of Reed Slatkin, co-founder of Internet service provider Earthlink Inc., based on allegations that he operated a Ponzi scheme through which he misappropriated over $230 million, defrauded more than 500 investors, concealed $90 million in accounts, and commingled investor funds with personal funds. Criminal charges were later filed against Slatkin, and he pleaded guilty to 15 counts of mail fraud, wire fraud, money laundering, and conspiracy to obstruct justice in connection with an investigation by the Securities and Exchange Commission.}} and on September 2, 2003, he was sentenced to 14 years in federal prison.{{cite web|url=http://www.usdoj.gov/usao/cac/pr2003/116.html |title=SANTA BARBARA MAN SENTENCED TO 14 YEARS FOR RUNNING $600 MILLION PONZI SCHEME THAT PREYED ON FRIENDS FOR OVER 15 YEARS |access-date=December 26, 2006 |url-status=dead |archive-url=https://web.archive.org/web/20070211220149/http://www.usdoj.gov/usao/cac/pr2003/116.html |archive-date=February 11, 2007 }}

His Federal Bureau of Prisons registration number was 24057-112 and he was initially incarcerated at the low-security Taft Community Correctional Institution in Taft, California.{{citation needed|date=January 2011}} By 2010, he had been transferred to the low-security Lompoc Federal Correctional Institution in Lompoc, California.{{cite web | url = http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=IDSearch&needingMoreList=false&IDType=IRN&IDNumber=24057-112 | title = Inmate Locator | access-date = 2011-01-17 | publisher = Federal Bureau of Prisons }}

Many of his victims were also Scientologists. In his fraud case, his lawyers blamed his behavior on Scientology; but Scientology's lawyers from Latham & Watkins characterized Slatkin's explanations as "shameful" and having "sold the psychiatrists a bill of goods".{{cite news | url = http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20030902&ID=2834851 | date = September 2, 2003 | title = Ex-EarthLink Executive Is Heading to Jail | agency = Reuters | first = Ben | last = Berkowitz | archive-url = https://web.archive.org/web/20040804023519/http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20030902&ID=2834851 | archive-date = August 4, 2004 | access-date = 2011-01-17 | url-status = dead }}

In July 2013, he was released from a halfway house in Long Beach, California.{{Cite web | url=http://www.independent.com/news/2013/jul/08/ponzi-king-reed-slatkin-freed/ |title = Ponzi King Reed Slatkin Freed|date = 2013-07-08}}

On June 23, 2015, journalist Tony Ortega reported on his website that Slatkin had died from a heart attack. Ortega said that he had confirmation of Slatkin's death from Slatkin's ex-wife.{{cite news|last1=Ortega|first1=Tony|author-link1=Tony Ortega (journalist)|title=Reed Slatkin dies of heart attack — Scientologist served time as major Ponzi schemer|url=http://tonyortega.org/2015/06/23/reed-slatkin-dies-of-heart-attack-scientologist-served-time-as-major-ponzi-schemer/|access-date=June 25, 2015|work=The Underground Bunker|date=June 23, 2015}}{{better source needed|reason=Although Ortega is a journalist, the information was published through his own website, confirmation from reliable, secondary sources is needed. The paragraph should be simplified then.|date=June 2015}}

In February 2008, the television show American Greed featured the Slatkin case, titled "Stealing $$$ from Scientologists".

{{Reflist|2}}

• {{cite news| title =Stealing $$$ From Scientologists and the Art of Fraud| work =American Greed|publisher =CNBC | date =February 20, 2008| url =https://www.cnbc.com/id/23163763/site/14081545/ | archive-url =https://archive.today/20130119125950/http://www.cnbc.com/id/23163763/site/14081545/ | url-status =dead | archive-date =January 19, 2013 }}
• [https://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]
• [https://web.archive.org/web/20110202175643/http://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]

{{Scams and confidence tricks}}

{{DEFAULTSORT:Slatkin, Reed}}

Category:1949 births

Category:American people convicted of money laundering

Category:20th-century American Jews

Category:American Scientologists

Category:Cranbrook Educational Community alumni

Category:Pyramid and Ponzi schemes

Category:Scientology-related controversies

Category:American people convicted of fraud

Category:American prisoners and detainees

Category:American businesspeople convicted of crimes

Category:2015 deaths

Category:American members of the clergy convicted of crimes

Category:American people convicted of obstruction of justice

Category:21st-century American Jews

Category:Prisoners and detainees of the United States federal government