Investors who lost more than $225 million when scam artist Reed Slatkin's long-running Ponzi scheme collapsed won a round in court Friday in their efforts to recover the money from the few investors who profited from the scam. The ruling will make it easier to reclaim funds paid to some trustees at the expense of others over the last 15 years.
"It really helps narrow what's at issue," said Alexander Pilmer, partner at Kirkland & Ellis LLP and counsel for the trustee. "We're now not arguing if this was a Ponzi scheme, or if Reed Slatkin had the intent to defraud anyone, but simply how much money did people get." According to Pilmer, the bogus profits totaled more than $180 million, with the top 75 investors coming out ahead by $151 million.
This article appeared in its entirety in the January 18, 2003 issue of the Los Angeles Times.