Scientology's Reed Slatkin

Earthlink founder settles with SEC
By Joseph Gallivan

June 5, 2001 -- By Xenu! Reed Slatkin's out of the investment game for good - but he may not be out of the woods.

Earthlink founder and alleged Ponzi scheme operator Slatkin has cut a deal with the SEC.

He convinced hundreds of California bigwigs - including celebrities and fellow Scientologists who believe in Xenu - to let him invest up to $230 million of their money. He allegedly paid old investors with new investors' money instead of actually investing it.

Slatkin signed a "consent to entry of judgment and permanent injunction" decree with the Securities and Exchange Commission last Thursday. He agreed not to violate federal securities laws in the future, but neither denied nor admitted any wrongdoing.

The agreement says the SEC can fine him if he is found guilty of swindling investors, and it can force him to repay them.

SEC spokesman Kelly Bowers said yesterday that the penalties would be applied "only once the investors are made whole." The situation is similar to bankruptcy: If Slatkin has a spare $230 million, he will pay back his investors, such as "Boiler Room" star Giovanni Ribisi, plus penalties to the SEC. If not, they will get a portion of what they are owed.

Lawyers for both sides are currently thrashing out the numbers.

Slatkin's EarthLink assets are just over $19 million.


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