| News Archive |
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Peace is bought with an exchange
of advantage, so make the advantage and then settle. Don't ever defend. Always
attack. Don't ever do nothing. Unexpected attacks in the rear of the enemy's front
ranks work best.
by L Ron Hubbard |
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April 2, 2002
Santa Barbara Newspress
The Slatkin Saga / The Investigation (2 articles)
Trustee: 'Reed did not do this alone'
Former FBI agent in charge of finding out where all the money went
} "Ron was in fact like everybody else involved; he was taken in by Reed Slatkin," said his attorney, Robert Sanger of Santa Barbara. "Reed Slatkin went to extremes to convince people that he was legitimate. Ron Rakow is a victim just like many, many other people in this situation."
} Then there is the matter of recovering millions of dollars from investors, who the trustee contends received far more than they invested. The top 75 profited by $151 million; the range is $630,000 to a high of $5.86 million per person. The next 371 made $44.4 million.
Predictably, this alarms those who reaped profits. They've already paid taxes on those gains.
One local longtime investor said even though he is listed as a "profiteer" he looks at this as a loss. Coming out of retirement he is back working as an engineer. His investment with Mr. Slatkin was his 401(k). His so-called profit was the interest income he and his wife used to pay living expenses. |
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March 28, 2002
Stockwatch.com
Athena Gold ex-backer Slatkin pleads guilty in massive Ponzi scheme
} Mr. Slatkin also had a business relationship from 1986 to 1990 with Patrick
Gallagher, a commodities broker licensed with the Chicago Board of Trade.
The pair had an ugly falling out and Mr. Gallagher's attorney had ominous
comments in legal correspondence. "We are fearful that a comprehensive
review of certain trading and account activity may reveal unsavory
characteristics of a scabrous nature involving, among other things,
irregularities with regards to the exchange rules and conduct, which, under
closer scrutiny, may subject one to prosecution by various government
agencies." |
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April 1, 2002
Santa Barbara Newspress
The Slatkin Saga / The Victims
'I believed him, and look what he did'
} But the saga of Mr. Slatkin's scam is actually nowhere near done. Five investors -- four in Santa Barbara -- who walked away from the debacle with between $2 million and $5.8 million will have some serious explaining to do in the coming weeks, as investigators try to hunt down accomplices to the fraud. The same goes for the privileged few who worked in Mr. Slatkin's office but say they were unaware of the theft going on under their noses. |
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March 26, 2002
PLEA AGREEMENT - HTML / PDF |
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March 27, 2002
Wall Street Journal
EarthLink Co-Founder Slatkin Admits to Fraud in Ponzi Scheme
} So far, no one else has been charged in the case, but the 32-page statement of facts mentions several unindicted co-conspirators, including one man, Ron Rakow, who served nine months in federal prison during the 1980s for his role in an $80 million Ponzi scheme known as "Culture Farms." According to the statement of facts, Mr. Rakow -- who began investing with Mr. Slatkin before he was sent to prison -- helped promote Mr. Slatkin's money management services.
Mr. Slatkin's Santa Fe, N.M., bookkeeper, Jean Janu, and two others, Dan Jacobs and Didier Waroquiers, are also named in the statement as accomplices in Mr. Slatkin's conspiracy to obstruct a Securities and Exchange Commission investigation into his investment practices that began in 2000.
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March 26, 2002
Reuters
Earthlink founder Slatkin to plead guilty to fraud
} EarthLink Inc. co-founder Reed Slatkin, accused of defrauding investors out of hundreds of millions of dollars in an investment scheme, has agreed to plead guilty to 15 federal charges after nine months of talks, prosecutors said on Tuesday.
Prosecutors said the 15 charges would carry a theoretical maximum of 105 years in prison but he is expected to face between 12 and 15 years under federal sentencing guidelines when sentenced.
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March 25, 2002
St. Louis Post - Dispatch
Bennetta Slaughter Lies (real title : Villa Gesu Will House Teachers Of Group With Scientology Link ; Applied Scholastics Plans A Commuity Center As Well, Hopes To Open Next Fall)
} A nonprofit organization promoting the teaching methods of L. Ron Hubbard, founder of the Church of Scientology, is moving its world headquarters to Villa Gesu, a former retirement home for Catholic nuns along Riverview Drive north of Interstate 270.
} Asked about the relationship between the Church of Scientology and Applied Scholastics, Slaughter says there is none.
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| This is easily disproven. Applied Scholastics, a subsidiary of the Church's "social betterment" Association for Better Living and Education (ABLE), licences schools to use "learning technology" designed by L. Ron Hubbard. ABLE is even included in the secret deal that the Church of Scientology made with the IRS in 1993. |
| For those unfamiliar with Bennetta Slaughter as she relates to Reed Slatkin, when the Slatkin story first broke, it was Bennetta who attempted to 'wrangle' the investors, asking for $250 each so they could be represented by a law firm with significant Scientology ties (Sam Rosen of Paul, Hastings, Janofsky Walker). It was later found out that Bennetta didn't even have a balance with Slatkin at the time. |
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February 1, 2002
Rocky Mountain News
Tuchman among swindled
TeleTech founder sues over $2 million lost in investment club |
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January 29, 2002
LA Times
Couple Lose Bid for Tax Refund Tied to Tuition
Courts: They had claimed that part of their payments to Jewish day schools constituted charitable contributions and cited an IRS break given to Church of Scientology members |
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January 28, 2002
The Mail Tribune (Oregon)
Fixer-uppers and fishy deals [ part one ... part two ]
How tainted millions bankrolled renovations of the Ashland Springs Hotel and Lake of the Woods Resort |
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January 11, 2002
The Jewish Journal
Fraudulent Friend
A quadriplegic is one of 800 victims in an alleged investment scheme |
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December 18, 2001
LA Times
Slatkin Labeled a 'Monster' by His Creditors
Court: Trustees attempt to unravel details of the manager's crumpled empire at
bankruptcy hearing, where it is alleged that he confessed to the scheme.
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December 15, 2001
LA Times
Investments Called Longtime Scheme
Courts: Report says alleged Ponzi scam by EarthLink co-founder Slatkin is a 'carefully orchestrated charade.'
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September 7, 2001
TALK Magazine - October issue (on newstands
now!)
House
of Games |
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July 31, 2001
Wall St Journal
Slatkin
Trustee Warns Investors Their Recovery Chances Are Slim
} "I can say with
certainty from what I know now that you are not going to get all your money back,"
Mr. Neilson told about 200 investors gathered in a hotel conference room here.
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| For more info on Incomnet and Pricenet USA, mentioned in this
article, and which Reed owns a collective 567,000 shares, see HERE. |
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July 10, 2001
LA Times
Slatkin
Investors Ask IRS to Drop Bankruptcy Claim
} "Clients of bankrupt
money manager Reed E. Slatkin want the Internal Revenue Service to forgo its $11.8-million
claim for unpaid taxes in the case, saying the government's demand would unfairly
dilute the few assets available to pay investors. |
| See where Reed
lied regarding short term capital gains taxes in the 2000 deposition as it
relates to this article |
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July 8, 2001
Santa Barbara News-Press
Scientology
helped shape Slatkin's life
} "I really don't
know what happened," said Santa Barbara businesswoman Gillian Christie, a member
of the local Scientology church who met Mr. Slatkin through a mutual friend. "Nobody
really knows, because he's not allowed to talk. But I have this policy of saying
that if you point a finger at someone, what you get is a sore finger. Reed is
not responsible for me. I am responsible for me." |
| slatkinfraud.com
editorial reply |
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