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Ex-Associate of Reed Slatkin Pleads Guilty

May 20, 2003|From Associated Press

A former associate of investment manager Reed Slatkin pleaded guilty Monday to conspiring to obstruct a federal probe into a pyramid scheme that bilked investors out of nearly $600 million.

Richard D. McMullin, 38, admitted he conspired to obstruct a federal investigation, made false statements to law enforcement officials and made false statements under oath to the trustee in Slatkin's bankruptcy.

Under his plea bargain, McMullin is likely to face 18 months to two years in prison, plus a possible fine. McMullin also agreed to pay $1.55 million to the bankruptcy trustee -- money that could be returned to the scam's victims. His sentencing is set for Oct. 6.

Prosecutors said McMullin worked in Slatkin's office from roughly 1986 to 1999, creating investors' account statements and conducting stock transactions.

Slatkin, 54, a co-founder of EarthLink Inc., pleaded guilty last year to charges relating to the scheme, which prosecutors say cheated 800 investors out of more than $593 million. The scam did not involve EarthLink.

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