---

Scientology's Reed Slatkin

http://www.theregister.co.uk/cgi-bin/dispatcher.cgi

EarthLink founder crashes, burns in fraud probe
By: Thomas C Greene in Washington
Posted: 04/05/2001 at 06:10 GMT

Atlanta, Georgia ISP EarthLink co-founder and 'Church' of Scientology dupe Reed Slatkin is under investigation by the US Securities and Exchange Commission (SEC) for running an investment scam, the Los Angeles Times reports.

Slatkin is thought to have operated a Ponzi scheme (or 'pyramid scheme'), in which 'early adopters' are paid returns out of money surrendered by subsequent 'investors'.

The scam here allegedly involves roughly 100 investors including Slatkin's co-co-founders Sky Dayton and Charles Betty, numerous other Scientology fools, and something like $300 million.

Slatkin filed for bankruptcy Tuesday, revealing debts of more than $100 million and assets of $50 million to $100 million, the LA Times says. He's also been sued by three victims for failing to return $35 million he 'managed' for them.

He allegedly told the investors that their money was tied up in a legal misunderstanding, but they reckon he'd been using it to meet obligations to subsequent dupes.

EarthLink, naturally, insists that it has no involvement in Slatkin's games, and is delighted to report that he has voluntarily resigned from the company's board of directors. As if he'd been given a choice.

Related Links :
Co-Founder of EarthLink Is Accused of Investor Fraud (LA Times)
http://www.latimes.com/business/20010502/t000036899.html EarthLink Co-Founder Files for Bankruptcy (LA Times)
http://www.latimes.com/business/20010503/t000037243.html

---

The views and opinions stated within this web page are those of the author or authors which copyrighted and wrote them and may not reflect the views and opinions of the ISP or account user which hosts the web page. The opinions may or may not be those of the Chairman of The Skeptic Tank. The term "Scientology"® is trademarked to the Scientology crime syndicate. This information is provided in Fair Use for the public safety in the hopes that others don't fall for Scientology's related frauds.

Return to The Reverend Reed Slatkin main index page Return to The Skeptic Tank's main index page.

E-Mail Fredric L. Rice / The Skeptic Tank