During more than 15 years of fraud, Reed E. Slatkin cost his investors $240 million. Many of those investors considered him as much a trusted friend as money manager. The long-running scam ended in Slatkin's bankruptcy in 2001 and his guilty pleas last year to 15 counts of fraud, conspiracy and money laundering.
Some of Slatkin's investors have asked to tell their stories of betrayal at his sentencing today, hoping to persuade the judge to hand down a maximum sentence. Attorneys for the trustee and creditors have sued to recover funds from Slatkin's bankers and clients who came out ahead, as well as the Church of Scientology and six affiliated groups who allegedly wound up with tens of millions of dollars in donations from Slatkin clients. Alexander Pilmer, Kirkland partner and attorney for the trustee and creditors estimated there still may be $100 million to pursue for investors whose accounts were drained.
This article appeared in its entirety in the September 2, 2003 edition of the Los Angeles Times.