Reed Slatkin associate to plead to obstruction

Reutes, Apr. 25, 2003
http://boston.com/

LOS ANGELES (Reuters) – A second associate of former EarthLink Inc. financier Reed Slatkin has agreed to plead guilty to charges of obstructing justice in the probe into Slatkin’s $600 million investment scheme, federal prosecutors said Friday.

The U.S. Attorney’s Office in Los Angeles said Richard McMullin, 38, has agreed to plead guilty at a May arraignment to charges of obstructing the U.S. Securities and Exchange Commission’s probe into Slatkin and making false statements under oath to federal agents and a bankruptcy trustee.

Slatkin, who provided start-up funds for Internet service provider EarthLink, pleaded guilty last April to bilking nearly 800 clients out of almost $600 million in a so-called ”Ponzi scheme,” where he used investments from new clients to pay returns to old clients.

Slatkin filed bankruptcy in May 2001 and had his assets frozen by the SEC, though the investigation into his activities began in 1999.

In his plea, authorities said, McMullin admitted that he and Slatkin conspired to obstruct the SEC’s investigation after it was initiated.

McMullin also lied to agents of the Federal Bureau of Investigation and the Internal Revenue Service and to the court-appointed attorney serving as trustee for Slatkin’s estate, officials said.

McMullin has agreed to pay more than $1.5 million in restitution to Slatkin’s victims, prosecutors said. He earned $2 million in salary and bonuses from Slatkin between 1986 and 1999 and made $952,000 from an investment account with him.

Another former Slatkin associate, Daniel Jacobs, agreed last October to plead guilty to helping obstruct the SEC investigation.

Slatkin, who faces up to 105 years in prison, is set to be sentenced on June 9.

Read Another Article

Swede to be expelled over Falungong link
Cops crack down on cult for ‘traffic violations’

Related News Articles Topic(s): Scientology Subscribe to Religion News Blog updates Subscribe to Religion News Blog [What is this?] Get Religion News Blog's headline by Email [What is this?] Follow Religion News Blog at Twitter Find Related Information Use our custom search engines to find additional research resources on religions and cults: ApologeticsSearch.com: Search for apologetics articles, books, videos, and other research resources across 135 Christian apologetics websites and blogs. CounterCultSearch.com: Search for information about (religious) cults, cult-like organizations, and cults experts -- as well as paranormal-, New Age, and pseudoscientific claims -- across 260+ websites, blogs and forums dedicated to cult research, spiritual abuse, ex-cult counseling & support. Find Related Religion & Spirituality Books at Amazon.com Scientology Possibly related... or Most Popular Religion News Articles Kent Hovind: Evangelist arrested on federal charges Beast’s real mark devalued to ’616′ Muslim Woman Gives Sex Advice on Arab TV Michael Jackson Confirms Conversion to Islam Kent Hovind, ‘Dr. Dino,’ guilty on all counts The fall and rise of Carlton Pearson Search False prophet Harold Camping sets another date for rapture: May 21, 2011 Watch the film Theo van Gogh was murdered for Kent Hovind — Dr. Dino — sentenced to 10 years in prison

Search Religion News Blog