Slatkin Associate Agrees to Plead Guilty

A former bookkeeper for Santa Barbara con man Reed Slatkin has agreed to plead guilty to obstructing a Securities and Exchange Commission investigation by creating fake documents that showed Slatkin held more than $500 million in Swiss accounts.

Jean Janu of Santa Fe, N.M., also agreed to plead guilty to failing to alert authorities to Slatkin’s crimes. The two charges could result in a sentence of up to two years in prison, said Assistant U.S. Atty. Steve Olson in Los Angeles. Defense attorney Victor Sherman said he would argue for probation because Slatkin had convinced Janu that the Swiss accounts were legitimate.

Prosecutors said Slatkin fraudulently raised $593 million from investors, including $142.5 million after he learned the SEC was investigating him. He was sentenced in September to 14 years in federal prison.