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Reed Slatkin

Alanzo

Bardo Tulpa
From Reed Slatkin's affidavit naming Tony Hitchman, (the "journalist" who interviewed Hubbard in a film shot at Saint Hill, and who, it is said, became a Scientologist as a result of that interview) as his top salesman to vouch for him to other Scientologists:

Mr. Hitchman's Early Involvement with Slatkin's Ponzi Scheme

2. I have known Anthony Hitchman since the mid- 1970's. I met him in the

Los Angeles area when we were both involved in the Church of Scientology

("Church").


3. In about 1984, I began soliciting money from others ostensibly to invest

for them. I intended to run this "investment" scheme so that fellow members of

the Church could have funds available to purchase services from the Church. I

planned to take money from people, invest it, and have money available for the

withdrawal for Scientologists who needed money for Church services.


4. When I knew that many investments would not cover the withdrawals which

were requested, I began to cover the withdrawal requests with funds from new

"investors."


5. From the very beginning, I depended on Mr. Hitchman to ensure the

viability of my scheme. He, along with a few others, was to bring other,

"investors" to me, thus providing a flow of new money which could be used to pay

withdrawal requests made by other "investors."


6. Mr. Hitchman was aware of my Ponzi scheme from the beginning and helped

me plan and execute it. In about 1985, we discussed my scheme. We discussed

that I would need to cover withdrawals of old "investors" with the deposits of

new "investors."


7. We discussed the fact that I falsified records. I told "investors" that

funds were invested in certain securities when that was not true. I told Mr.

Hitchman that the statements I sent to my "investors" were false.


8. We also discussed how Mr. Hitchman would bring new "investors" to me. We

agreed that he would promote me to others as an effective investor. WE also

agreed that if Mr. Hitchman had his own money with me, it would make it easier

for him to convince other people to "invest with me. That way, he could assure

people that he also had money "at risk" with me.


9. In Exchange for Mr. Hitchman's assistance to establish and ensure the

continued viability of my Ponzi scheme, I agreed to pay him on a regular basis.

In 1986, I paid Mr. Hitchman about $6000 a month. By 1988, I was paying Mr.

Hitchman about $10,000 a month. My payments to him quickly exceeded the money

he "deposited" into my scheme. By no later than mid-1988, I had paid out to him

more than he has "deposited." By 1993, I paid Mr. Hitchman about $15,000 a

month. By 1999, I paid Mr. Hitchman about $20,000 a month.


10. Attached as Exhibit 1 are accurate copies of requests by Mr. Hitchman to

me for monthly payments during 1999, 2000, and 2001. Most of the requests are

for amounts over and above the normal monthly payments. Each of the documents

was received from Mr. Hitchman or his wife, Margaret (aka Peggy). I recognize

their handwriting because I have received many handwritten and/or signed

documents from them over a period of more than twenty years. I received the

requests by fax from the fax number Mr. Hitchman uses to send faxes.


11. Mr. Hitchman reported to me on a regular basis as to what he was doing

to try to get new "investors" into my scheme and also what he was doing to get

old "investors" to contribute new money.


12. Mr. Hitchman acted as an ambassador for me in connection with those

people he helped convince to give money to me. For example, he helped deal with

people who had concerns about investing with me. Mr. Hitchman also spoke with

persons who were upset with me because of delays in receiving a withdrawal or if

a person needed some extra money for the Church. On several occasions, I asked

Mr. Hitchman to talk to people out of attempting to withdraw money. Mr.

Hitchman reported back to me that he successfully achieved that goal.
 

Alan

Gold Meritorious Patron
The repercusions of what Slatkin did will be felt for years.

I knew Tony Hitchman well he helped me build my Boston Mission into a powerhouse, he also worked with me in Dallas.

To see him do this was heartbreaking.

One of my ex-girl friends lost close to $10,000,000 - she was so destitute I had to help her pay her rent on several occasions.

Many peoples lives were destroyed by this man.

Most of the seriously hurt people were in their 60's. They had what they thought enough to retire on......instead they lost almost everything they owned trying to survive the financial devastation.

Alan
 
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Alanzo

Bardo Tulpa
I think Reed Slatkin is one of the most important Scientology celebrities around.

He really communicates a 3D holographic lesson for us all.
 

svonhatten

Patron with Honors
I remember seeing this guy's face for some reason. I think someone recommended him as an investor to me or something back in '05 or '06.

Alanzo,

Sometimes books are only remembered for their final chapter.

I hope you know that for well over a decade Reed Slatkin made a lot of people very very rich.

Of course, those people are not speaking up.

As with any investor you have up months and down months.

When you are really greedy and want lot's of money for doing nothing you gamble with high risk investments.

Matt Freshback lost millions for his clients too after a few decades of success. Why do you think he is working as an FSM at the F.S.O.? He didn't get hit because he a had license to win and loose.

Joey Allesandrini lost millions too. He has a license to loose.

Reed was safe while everyone was getting rich but he didn't have a license to loose. He didn't have a license to win either but nobody complained about that.

Wall street looses billions of investment dollars every week. Also the market in London and Japan.

Not one person who made millions from Reed went to his home in Santa Barbara and offered to do one hour of labor to help him out. Nobody did conditions with him. Nobody offered him a dime to help him bail out, which he really could have successfully done. Well, I won't say nobody. Some people did go out of their way to cover his back.

There is an entire group of hundreds that contributed to the financial looses made in the last year at Reeds home in Santa Barbara.

Furthermore, the people who "invested" with Reed were hoping to get rich fast, double their money, get paid for no labor or exchange other than putting money on the street. How do you think the profit rolls in for those kind of people? OTHER PEOPLE'S FINANCIAL LOSSES become their gain. The type of investing Reed did was betting other people would loose. And the dollars lost would float into his investors pockets. So, when you are out on the street hoping to get rich from other people's losses, you have to be willing to stand on the flip side of the coin. That's what gambleing is. The people who lost money with Reed were betting they could get rich from other people's losses. So what are you going to do?

And I don't think I agree with you, TI.

"Earthlink co-founder Reed Slatkin, an unregistered investment manager and ordained Scientology minister, admitted to defrauding clients of approximately 255 million dollars in a Ponzi-type investment scheme."

He admitted to defrauding clients? Doesn't that seem slimy to you?
 

Mick Wenlock

Admin Emeritus (retired)
Alanzo,

Sometimes books are only remembered for their final chapter.

I hope you know that for well over a decade Reed Slatkin made a lot of people very very rich.

Who did he make "very very rich"?

He set up BOGUS accounts - it is not a question of he took some losses on a flier me dear. He STOLE THE MONEY. He paid off older investors with money from newer ones

Of course, those people are not speaking up.

They dont have to - they're all listed - at slatkinfraud.com - why not give us the list of who lost vs who won?

As with any investor you have up months and down months.

yeah but you don't set up false swiss banks and accounts over YEARS - not months. It's called a con.

When you are really greedy and want lot's of money for doing nothing you gamble with high risk investments.

Matt Freshback lost millions for his clients too after a few decades of success. Why do you think he is working as an FSM at the F.S.O.? He didn't get hit because he a had license to win and loose.

Big difference between Matt and Reed - Matt didn't set up a con - he may have made some bad moves with investments but that's the way the cookie crumbles in the investment wolrd - it's why it is called risk.

Slatkin wasn't investing - he was scamming.

Joey Allesandrini lost millions too. He has a license to loose
Huh?.

Reed was safe while everyone was getting rich but he didn't have a license to loose. He didn't have a license to win either but nobody complained about that.

"everyone" wasn't getting rich - do you dream this stuff up out of whole cloth? Have you actually read the material in this court case? it sure doesn't look like it.

he wasn't hammered by the CofS while his scam was covert, it was only when it unravelled that they started in with the "oh, we never knew" routine.

Wall street looses billions of investment dollars every week. Also the market in London and Japan

It also gains them and if it loses billions in an illegal scam the people go to jail for it. Just like Slatkin.
.

Not one person who made millions from Reed went to his home in Santa Barbara and offered to do one hour of labor to help him out. Nobody did conditions with him. Nobody offered him a dime to help him bail out, which he really could have successfully done. Well, I won't say nobody. Some people did go out of their way to cover his back.

Scientologists were too busy running for cover and hoping they would get to keep their money.

There is an entire group of hundreds that contributed to the financial looses made in the last year at Reeds home in Santa Barbara.

Ah, they must be the people that typed up the false letters to the bogus address. oh no, wait, that was reed.

Furthermore, the people who "invested" with Reed were hoping to get rich fast, double their money, get paid for no labor or exchange other than putting money on the street. How do you think the profit rolls in for those kind of people? OTHER PEOPLE'S FINANCIAL LOSSES become their gain.

On this point we agree - they were greedy. Scams and cons like this work on the greedy. And there are none so greedy as Scientologists in search of easy money.

The type of investing Reed did was betting other people would loose. And the dollars lost would float into his investors pockets. So, when you are out on the street hoping to get rich from other people's losses, you have to be willing to stand on the flip side of the coin. That's what gambleing is. The people who lost money with Reed were betting they could get rich from other people's losses. So what are you going to do?

but that is not what el Reedo was doing. he ran a pyramid scheme, a large one.
 

OHTEEATE

Silver Meritorious Patron
Reed

I have many associates from the mid-80's who were defrauded by Reed in the 90's. Collectively , they lost millions. I saw Tony Hitchman at Flag, in the Sandcastle Restaurant, and had dinner with he and Rick Bishop and I don't remember the exact year, but it was around 2001 or so. It was just before Tony went back to South Africa. At the time, Rick was also considering a move to SA, to escape the hounding from the recievers of the BK over the Slatkin mess. He had got part or all of his money back just before it collapsed, but was being chased by the court attorneys, as it was not fair that some profited and some lost everything. The bottom line, is that I'm pretty sure Tony was sec-checked up one side and down the other, and if there is no PROOF of him being in on the con, then it's just Reed Slatkins word against his, and Reeds word is worm shit, obviously. Maybe he was working with him to attract investors, and actually thought Reed was a great money manager. He certainly lived well during those years. I wonder how Tony is doing in South Africa? Anyone on here, in SA know anything about Tony in PT?
 

Alanzo

Bardo Tulpa
The "American Greed" episode on Reed Slatkin from CNBC aired just now.

While watching it I saw something I had not seen before: the report said that Reed began to blame the Church of Scientology for his actions. He said that he "feared what the Church would do to him" and this is what kept him going with the Ponzi Scheme.

Huh?

I realized that we have never heard from Reed, after it was all over, about Scientology and what role he thinks may have played in all of it. At least I have not.

Did the Church, or Church leaders, have money invested with Reed?

Did he have to pay them off first?

Did they have special deals?

Does anyone have any information on this?
 

Alan

Gold Meritorious Patron
The "American Greed" episode on Reed Slatkin from CNBC aired just now.

While watching it I saw something I had not seen before: the report said that Reed began to blame the Church of Scientology for his actions. He said that he "feared what the Church would do to him" and this is what kept him going with the Ponzi Scheme.

Huh?

I realized that we have never heard from Reed, after it was all over, about Scientology and what role he thinks may have played in all of it. At least I have not.

Did the Church, or Church leaders, have money invested with Reed?

Did he have to pay them off first?

Did they have special deals?

Does anyone have any information on this?

If you want the history from beginning to end - go here:

http://www.slatkinfraud.com/archive.php
 

Kathy (ImOut)

Gold Meritorious Patron
I never invested any money with him, although some of my friends and business associates did.

One of them lost over 3 million with "Reed".

It seems that anybody who was anybody in Scientology went with Reed.

Did you?

www.slatkinfraud.com

From what I understood, Reed wouldn't talk to you unless you had a minimum of $50K to invest. Never had that kind of cash laying around, so I never did invest with him.

I just happened to be around several people/businesses that suffered from having invested in him.
 

Kathy (ImOut)

Gold Meritorious Patron
A couple of notes on Reed: I have many former associates who were hit very hard when Reed went down. There were too many outpoints with his operation. If it sounds too good to be true, it probably is. I never met him , largely because he never went to events or got any auditing or training. I heard one story from the last months before his bust; some people were starting to ask the obvious questions, hey, why aren't you a Patron? Why aren't you on lines if you have a billion dollars under your stewardship? So, Reed starts showing up at AOLA, and people see him going into session from the HGC waiting area, but what they did not know, was that he had purchased an intensive of ASSISTS! No ruds, no meter. For PR purposes only. He would have clients meet him at the AO and talk while waiting for session. This spread around quickly that he was on lines, and the heat cooled way down. It shows his true nature. Con man. He should be watched like a hawk the rest of his life after he gets out, to make sure he earns an honest living.

I knew someone that saw him at Flag once - she said she wanted to take a shower after just meeting him. I guess he was kind of slimy.

Personally, I know there is something wrong when an investor is guaranteeing you a 30% return on your money. No one can ever guarantee that - and if they do, turn and go in the other direction.
 

Kathy (ImOut)

Gold Meritorious Patron
I also know the Bill Truax's firm (accounting office) was to re-do all of the tax returns for the people that had invested with Reed - how ever many years they were invested with Reed, those tax returns had to be re-done as they were false. I'm sure it only went back 3 -5 years, since that's all the IRS will allow to correct a tax return.
 

HillFlag

Patron
Fraud is Fraud is Fraud

This was a scam and a fraud....there is no excuse for the criminality that took place. The greed or non-greed of the investors is irrelavant as it was the lawful fiduciary responsibility of the advisor that was breeched. Generating false statements and fictions is about the worst thing that a purported Financial professional can do...it is notdifferent that simply robbing people just a lot more devious.

Mr. Slatkin is where he deserves to be surrounded by his true peers.
 

Zinjifar

Silver Meritorious Sponsor
One question that the 'American Greed' segment opened is why Reed Slatkin didn't flee, once he knew the jig was up. Another was mentioned at the end, where it was said that Reed had gone on to denounce the 'Church' of Scientology's involvement, but, details were missing.

I'd say the first question has an obvious answer: Most Ponzi Schemers at Reed's level have managed to hide large portions of their ill-gotten gains and have some place to flee *to*. It's really hard to spend millions at that level, even on a lavish lifestyle, but, Reed's money wasn't *spent*; it was 'donated'; never to return. He was no better off at the end than at the beginning.

This is especially ironic because a large part of his 'paper' fortune was actually *legal*; i.e. his capital gain on the Earthlink IPO, which took a $75k investment to the multiple-hundred-million level. Of course, his invested $75k was accumulated fraudulently, but, had he been on his own, he *could* have gone legit with his own investors and managed to keep a pretty tidy sum for himself.

Except, it seems he had this 'silent partner' who wasn't interested in 'going legit'.

Hopefully the holes in the overall story will be filled in sometime soon.

Zinj
 

Alanzo

Bardo Tulpa
One question that the 'American Greed' segment opened is why Reed Slatkin didn't flee, once he knew the jig was up. Another was mentioned at the end, where it was said that Reed had gone on to denounce the 'Church' of Scientology's involvement, but, details were missing.

I'd say the first question has an obvious answer: Most Ponzi Schemers at Reed's level have managed to hide large portions of their ill-gotten gains and have some place to flee *to*. It's really hard to spend millions at that level, even on a lavish lifestyle, but, Reed's money wasn't *spent*; it was 'donated'; never to return. He was no better off at the end than at the beginning.

This is especially ironic because a large part of his 'paper' fortune was actually *legal*; i.e. his capital gain on the Earthlink IPO, which took a $75k investment to the multiple-hundred-million level. Of course, his invested $75k was accumulated fraudulently, but, had he been on his own, he *could* have gone legit with his own investors and managed to keep a pretty tidy sum for himself.

Except, it seems he had this 'silent partner' who wasn't interested in 'going legit'.

Hopefully the holes in the overall story will be filled in sometime soon.

Zinj

I had never heard that Reed denounced the involvement of the Church of Scientology, and I am wondering why the details were missing from the piece. Maybe because the piece was about Reed, and not about Scientology.

But whatever Reed said about the Church's involvement in his Ponzi scheme is vital information, I would think.
 

Alan

Gold Meritorious Patron
I had never heard that Reed denounced the involvement of the Church of Scientology, and I am wondering why the details were missing from the piece. Maybe because the piece was about Reed, and not about Scientology.

But whatever Reed said about the Church's involvement in his Ponzi scheme is vital information, I would think.

Well with luck - maybe Reed is on-lines right now reading this thread - perhaps he will join ESMB and tell us his story! :)
 

Div6

Crusader
THis is off-topic for this thread, but the thought just struck me...what if LRH WAS on a mission from the Galactic Council......

that might explain why he vamoosed rather than revinimused...

He's still on his returning mission Sec Check!
 

Alanzo

Bardo Tulpa
Well with luck - maybe Reed is on-lines right now reading this thread - perhaps he will join ESMB and tell us his story! :)

Posting from his prison cell.

"Dear Diary -

I'm so ashamed of myself. I defrauded millions.

I just wanted to be like Ron! :bigcry:

Reed"
 

Zinjifar

Silver Meritorious Sponsor
Posting from his prison cell.

"Dear Diary -

I'm so ashamed of myself. I defrauded millions.

I just wanted to be like Ron! :bigcry:

Reed"

The change in Reed Slatkin since his jailing is amazing. He looks horrible physically and completely caved in psycologically. Very bad shape. I hope we get the full court documents and statements sometime. There's still a lot of unexplained stuff. Hopefully still part of an ongoing criminal investigation.

Zinj
 
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