Riblet ruled the Slatkin scheme was a Ponzi in the hearings on the plan of reorganization. This is consistent with her findings on the Slatkin plea. Overal he ran a complex scheme of fraudulent activity hidden by investment wins, some larger than others. The negatives prevailed and the result is being described as res judicata on the issue in the trustee's papers filed for the summary judgment.

 

Some of the evidence Slatkin was engaged in substantial legitimate business is as follows:

• Reed traded for some entities with New York businessman George Elvin under the names of Raptor Avarian and Orno partnerships.agreement. Elvin admits to success as well- letter. He utilized the baseplate/Winstock trading program, which gave him hourly sorts of 3000 equities for instant trading decisions. Elvin just bought out Reed’s 50% ownership of these partnerships for 8 million dollars. It is unknown what they were worth when Reed was able to actively manage them but estimates would range from 8 to 15 million dollars and estimated they were generating 1-3 million dollars per
• Reed held over 12 million in real estate.
• Reed bought positions in multiple companies in the 100k to 1 million share amounts including Earthlink, Instant Video, Computer Motion, Chantal, Conceptus, Netegrity, Akorn, Fronteir Airlines, Bid.com, Vixel, Physicians Data Corporation, Connected Systems
• Reed spent up to 1 million dollars over a very long period of time and had a full-time computer programmer under contract by the name of Jeff Donovan to develop his proprietary volume based trading software. Jeff was paid 12.5k per month in the final years to update and maintain the program on a daily basis including adding new issues and fixing splits and data errors.The program detected securities about to move up, based on above normal volume and chart pattern for last 125 days. Key cornerstone philosophy of the program was based on Slatkin's observation that a smaller investor should follow big money flow into stocks by the large funds.
• Reed invested in high risk and high return limited partnerships and venture investments capable but not guaranteed of generating the returns he needed.
• He had a profitable IPO trading business.
• He managed money for his close relatives.
• He had no escape strategy and stayed to face punishment..
• He invested in over 100 separate equity, venture and real estate ventures as indicated in his bankruptcy filings.