Ex-Slatkin Associate Is Sentenced in Scam

A former associate of Santa Barbara investment scam artist Reed Slatkin was sentenced to five months in federal custody and five months of home detention for obstructing a federal probe and lying to investigators.

Reed Slatkin
Earthlink co-founder Reed Slatkin, an unregistered investment manager and ordained Scientology minister, admitted to defrauding clients of approximately 255 million dollars in a Ponzi-type investment scheme. Many of his victims were fellow Scientologists; others were wealthy investors with Hollywood connections.

Richard D. McMullin, 39, worked as an assistant in Slatkin’s office from the mid-1980s until 1999, handling phone calls from investors, helping to create account statements and researching stocks.

U.S. District Judge Margaret Morrow ordered McMullin to pay a $4,000 fine. Assistant U.S. Atty. Steve Olson said McMullin paid $1.55 million in restitution to the bankruptcy trustee to help make up for his role in the scam, which fraudulently raised $593 million from some 800 investors over 15 years.


Morrow in September sentenced Slatkin to 14 years in federal prison for his scheme, which targeted many members of the Church of Scientology.

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Source

(Listed if other than Religion News Blog)
Los Angeles Times
Dec. 2, 2003
E. Scott Reckard
www.latimes.com

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This post was last updated: Nov. 12, 2014