Feeds

EarthLink founder crashes, burns in fraud probe

And takes several other Scientology dupes with him

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Atlanta, Georgia ISP EarthLink co-founder and 'Church' of Scientology dupe Reed Slatkin is under investigation by the US Securities and Exchange Commission (SEC) for running an investment scam, the Los Angeles Times reports.

Slatkin is thought to have operated a Ponzi scheme (or 'pyramid scheme'), in which 'early adopters' are paid returns out of money surrendered by subsequent 'investors'.

The scam here allegedly involves roughly 100 investors including Slatkin's co-co-founders Sky Dayton and Charles Betty, numerous other Scientology fools, and something like $300 million.

Slatkin filed for bankruptcy Tuesday, revealing debts of more than $100 million and assets of $50 million to $100 million, the LA Times says. He's also been sued by three victims for failing to return $35 million he 'managed' for them.

He allegedly told the investors that their money was tied up in a legal misunderstanding, but they reckon he'd been using it to meet obligations to subsequent dupes.

EarthLink, naturally, insists that it has no involvement in Slatkin's games, and is delighted to report that he has voluntarily resigned from the company's board of directors. As if he'd been given a choice. ®

Related Links

Co-Founder of EarthLink Is Accused of Investor Fraud (LA Times)
EarthLink Co-Founder Files for Bankruptcy (LA Times)

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.