Ep 12. In Harms Way

In this episode of American Greed season 9, titled "In Harm's Way," viewers are taken on a journey into the world of Ponzi schemes and investment fraud. The episode centers around a man named Reed Slatkin, a former member of Scientology who became a successful entrepreneur and investment manager in the 1990s.

Slatkin was known for his charisma and charm, and he quickly gained the trust of many high-profile clients, including celebrities and business executives. He promised them extraordinary returns on investments in his companies, which he claimed were involved in cutting-edge technology and internet ventures. Slatkin was so convincing that he even managed to recruit many of his former Scientology colleagues as investors.

As the episode unfolds, viewers see how Slatkin's scheme began to unravel. His investors became suspicious after they failed to receive promised returns and Slatkin was unable to provide them with a clear explanation. Many investors began to demand their money back, and several filed lawsuits against him.

The episode also explores the devastating impact that Slatkin's fraud had on his investors. Many lost their life savings and were left financially ruined. The stress of the situation took a toll on their emotional well-being, and some even reported turning to drugs and alcohol to cope.

Despite facing mounting legal challenges, Slatkin managed to maintain his façade of success for several years. However, in 2001, the Securities and Exchange Commission (SEC) launched an investigation into his activities, and Slatkin was eventually charged with 15 counts of securities fraud, mail fraud, and money laundering. He pleaded guilty and was sentenced to 14 years in prison.

Throughout the episode, American Greed provides viewers with a detailed analysis of the tactics that Slatkin employed to perpetrate his fraud. Experts in the field of white-collar crime explain how he took advantage of his investors' trust and the weaknesses in the regulatory system to carry out his scheme.

The episode also highlights the importance of due diligence in investment decisions. Americans Greed demonstrates that while Slatkin's fraudulent activities were complex, they could have been detected with a little bit of research and investigation. The show provides viewers with tips on how to avoid falling prey to similar scams.

Overall, In Harm's Way is a fascinating episode of American Greed that provides viewers with an in-depth look at the world of investment fraud and the devastating impact it can have on individuals and communities. The episode also serves as a wake-up call for investors, highlighting the importance of carefully researching investments and being vigilant about potential scams.