Church of Scientology Pyramid Scheme Investors Settlement - 2006-11-08
Investors filed a lawsuit against three groups affiliated with the Church of Scientology over a pyramid scheme operated by Reed Slatkin, the co-founder of EarthLink. The lawsuit claimed Slatkin used money from new investors to pay off earlier investors. Slatkin raised nearly $600 million and ultimately swindled investors out of about $240 million. Narconon International, the Church of Scientology Celebrity Centre International and the Church of Scientology Western United States were named as defendants. The three groups have agreed to return $3.5 million they received from a pyramid scheme.