Posted by Kathy Bazoian Phelps
Reed Slatkin is 64. And he is now free, after having served his 10 year prison sentence. Slatkin had pleaded guilty to charges relating to his $600 million Ponzi scheme that defrauded 800 investors. In one of the early and more notorious Ponzi schemes of this generation, Slatkin defrauded Hollywood celebrities and fellow Scientology members. He returned money to only select investors, many of which were his friends in Scientology.
Out of the financial and emotional wreckage caused by the Slatkin Ponzi scheme came some significant law, including a Ninth Circuit decision holding that a criminal guilty plea can be used as conclusive evidence of fraudulent intent for purposes of proving an actual fraudulent transfer claim. Johnson v. Neilson (In re Slatkin), 525 F.3d 808 (9th Cir. 2008).
Since many Ponzi schemers are sentenced these days to what is effectively a life sentence (e.g. Bernard Madoff for 150 years; Allan Stanford for 110 years), it will be interesting to see what this Ponzi schemer does with his life on the other side.
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