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Associate of EarthLink Co-Founder Pleads Guilty to Obstructing SEC Probe

[ This fellow is a scientologist too ]

The Associated Press
Published: Nov 21, 2002
LOS ANGELES (AP) - A business associate of Earthlink co-founder Reed Slatkin pleaded guilty Thursday to conspiring to obstruct the Securities and Exchange Commission's investigation of a $600 million pyramid scheme.

Daniel Jacobs, 60, faces up to five years in prison and a maximum fine of $250,000 when sentenced March 24 on a charge of conspiracy to obstruct justice, the U.S. attorney's office said.

Jacobs, a former Burbank, Calif. resident who now lives in Michigan, has agreed to pay $1 million in restitution, federal prosecutors said.

Jacobs acknowledged in a plea agreement that he and others provided the SEC with false documents about NAA Financial, a bogus Swiss brokerage firm in which Slatkin claimed he was holding his investors' funds.

Instead, Slatkin used more than $593 million collected from 800 investors to pay older investors while claiming he was delivering above average returns.

Slatkin, who also served as financial adviser to celebrities, business executives and socialites, pleaded guilty in April to mail fraud, wire fraud, money laundering and conspiracy to obstruct justice. He faces up to 105 years in prison when sentenced Feb. 24.

AP-ES-11-21-02 2213EST

Related Articles:
Reed Slatkin Associate Pleads Guilty, Reuters October 15, 2002
Assets and Timeline, March 31, 2002 Santa Barbara News-Press
Earthlink Co-founder pleads Guilty to fraud, Reuters, March 22,2002
FBI and IRS Raid Offices of Reed Slatkin, LA Times, May 12, 2001
Co-founder of Earthlink faces claims of $600 million. LA Times May 11, 2001

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