Investors defrauded of $255 million by EarthLink Inc. co-founder Reed Slatkin are hoping to recover funds from the Church of Scientology International and six affiliated organizations that allegedly wound up with tens of millions of dollars from the investment scam.
Alexander Pilmer, a partner in Kirkland's Los Angeles office and attorney for the trustee and creditors, said that there is a potential for significant recoveries from the organizations because legally, there is no protection for third parties if it can be shown that the group received profits from Slatkin. Dozens of people who have profited from Slatkin's scheme have already settled claims. He added, "We believe that Scientology entities received tens of millions of dollars from Slatkin or Slatkin's Ponzi scheme."
This article appeared in its entirety in the March 26, 2003 edition of the Los Angeles Times.