Reed
Slatkin acted as an investment advisor for over 15 years. During that period,
he ostensibly invested millions and millions of dollars in behalf of hundreds
of investors. During the latter part of 1999 the Securities and Exchange Commission
(SEC) commenced an investigation into the activities of Mr. Slatkin. For Mr.
Slatkin was in the process of liquidating any and all investments made on behalf
of any investors. In actuality, during this period, Mr. Slatkin solicited millions
of dollars from investors in direct contradiction to the assertions made to
the SEC.
During the same period
of time, a number of the investors were requesting return of funds from Mr.
Slatkin. When they met with an unexpected lack of response from Mr. Slatkin,
some of the investors brought lawsuits to recover their investments. Some
of the investors also threatened to file involuntary bankruptcy petitions
against Mr. Slatkin, forcing him into bankruptcy.
Mr. Slatkin had represented
to both the SEC and the investors seeking return of their money that there
were adequate funds to return all investor monies. Mr. Slatkin stated reason
for his inability to return the investments was that European authorities
were temporarily holding all of the funds.
Ultimately, on May 1,
2001, Reed Slatkin filed bankruptcy under Chapter 11 of the Bankruptcy Code
in the United States Bankruptcy Court for the Central District of California,
Santa Barbara Division, Case no ND 01-11549-RR. The bankruptcy judge assigned
to this matter is the Honorable Robin Riblet whose court is located in Santa
Barbara.
On May 16, 2001, Judge
Riblet ordered the appointment of a trustee. On the same date, R. Todd Neilson
was appointed as trustee. Mr. Neilson is a former FBI Agent and a CPA with
extensive experience in major fraud cases. As bankruptcy trustee, Mr. Neilson
now assumes responsibility for all of the assets which previously belonged
to Mr. Slatkin. His duties include converting the assets belonging to Mr.
Slatkin’s bankruptcy estate to cash and paying creditors with allowed
claims their pro-rata portion of those assets. In addition, Mr. Neilson will
be in charge of the forensic investigation into the activities of Mr. Slatkin
prior to the bankruptcy. Mr. Neilson has engaged the accounting firm of Neilson
Elggren LLP to provide assistance in the forensic accounting analysis. He
has also engaged the law firm of Gumport, Reitman & Montgomery to act
as his general legal counsel. During the course of his administration Mr.
Neilson will provide periodic reports of his findings to the investors and
creditors. Those reports will be accessible through this website.
Shortly after the filing
of the bankruptcy, a Creditors Committee was formed consisting of seven investors.
The investors collectively hold millions and millions of dollars in claims
and will be representing the interests of all creditors and acting as an advisory
body to the Trustee and the Court. The names and addresses of the members
are listed on this website. This Committee is very active and extremely knowledgeable
concerning the activities of Mr. Slatkin. The Committee has engaged Richard
L. Wynne of Kirkland & Ellis as legal counsel. Due to the large number
of legal matters in this bankruptcy, the Trustee will also be utilizing the
services of Kirkland & Ellis in those situations where the general counsel
of the Trustee, Gumport, Reitman & Montgomery, may need assistance.
Mr. Slatkin has retained
legal counsel to represent him in both the bankruptcy and criminal matters.
Mr. Slatkin’s local bankruptcy counsel is Jay Michaelson, a well-known
bankruptcy attorney in the Santa Barbara area.
The information
contained on this page relating to case background is provided for informational
purposes only. This page does not purport to include all case backround related
information relating to the Reed E. Slatkin bankruptcy case (the "Slatkin
Bankrutpcy Case") which may affect your legal rights. The information
on this page is subject to change without notice, and the accuracy of the
information is not guaranteed. You are not justified in relying on any of
the information provided on this page. You should immediately consult competent
professionals (a) to determine your rights and obligations, (b) to identify
hearings and deadlines that may affect your rights or obligations, (c) to
independently verify all dates and deadlines that may affect your rights and
obligations, and (d) to protect your rights against the Debtor and to preserve
your rights in the Slatkin Bankruptcy Case.
