General: Many defendants in the fraudulent transfer actions are being sued for hundreds of thousands and even millions of dollars they transferred to state and Federal Taxing Authorities. The largest "Winner" of the Slatkin Bankrupcty will be the Federal Government, with the State Governments not too far behind. Some people ask where the money went and estimates that 30- to 60 million was paid to the Federal Government on the gains Slatkin reported to investors. Some of the transactions were real however and Slatkin owned some of the equities appearing on the statements and this complicates the issue for the government. The trustee has hired special tax counsel and is negotiating the large lien (about 13 million dollars) the government has placed on the estate for unpaid taxes. The trustee asserts it is much lower than this. He has admitted in papers filed with the court that he filed the 2000 tax return that Slatkin did not file as he went into bankruptcy in May 2001.

IRS:The most unfortunate defendants are those who withdrew money only for taxes, and are being sued for money they never held on to. For instance, if Slatkin's tax bill to you over the last 7 years was 500k and you withdrew money to pay the tax, you will be sued for the 500k you gave the IRS. Getting the money back from the IRS will be next to impossible, in part because of the statute of limitations.