Bryan Cave, the law firm that represented convicted con artist Reed Slatkin, has agreed to pay $650,000 to settle claims that it cost investors tens of millions of dollars when it failed to discover Slatkin's scam months earlier. The investors claim that Slatkin's attorney, Gerald Boltz, should have discovered the pyramid scheme in early 2000 when he was hired, but didn't make the discovery until shortly before Slatkin filed for Chapter 11 protection in mid-2001.
The law firm will not admit to any wrongdoing, but will pay $650,000 to Slatkin's trust for distribution to creditors, said Alexander Pilmer, a partner at Kirkland & Ellis LLP in Los Angeles. He added that investors are still owed about $240 million. More than 200 lawsuits are pending to recover money from the banks and investors who profited from the scheme.
This article appeared in its entirety in the September 17, 2003 issue of the Los Angeles Times.