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Atlanta Business Chronicle : Magazine probes scam [Slatkin] - 28 September 2001

01 Oct 2001

http://atlanta.bcentral.com/atlanta/stories/2001/10/01/tidbits.html

Atlanta Business Chronicle - 28 September 2001 - The Insider Trends & Talk Around The Town :

Magazine probes scam :

"Scientology, EarthLink and the Missing $500 million" states a headline on the cover of the October issue of Esquire magazine.

The inside story is about Silicon Valley's Reed Slatkin, a day trader who the Esquire article states promoted computer models to set up an investment fund that grew to more than $500 million.

Now Slatkin, a Church of Scientology International parishioner, is reported to be bankrupt and under federal investigation for what Esquire reported attorneys called one of the "biggest investment frauds in American history."

Esquire reported that Slatkin told Securities and Exchange Commission lawyers he obliged his investors through a sense of duty, as prescribed by L. Ron Hubbard, founder of the Church of Scientology.

Esquire also reported that in 1994 Slatkin met Sky Dayton, founder of Atlanta's EarthLink Inc. and a graduate of the Delphian School, a Scientology-affiliated boarding school in Oregon. Slatkin and a fellow Scientologist are reported to have invested $100,000 in EarthLink in exchange for a share of the new company.

Today EarthLink is a billion-dollar business, the third-largest Internet service provider in the country.

Scientology spokesperson Aron Mason told investigators in writing that the church knew nothing about the missing investment money, reported Esquire.

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