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Florida Bar Extends Investigation Beyond Rothstein

joshua — Thu, 14 Jan 2010 12:07:08 +0000

35 former senior attorneys from the defunct Fort Lauderdale firm Rothstein Rosenfeldt Adler are being investigated by the Florida Bar. In November, Scott Rothstein, the firm’s co-founder, was disbarred, then criminally charged with operating a Ponzi scheme involving hundreds of millions of dollars of client and investor funds.

“The Bar is actively investigating and will pursue remedies against anyone who has violated any rules,” said Jessie Diner, president of The Florida Bar board of governors. “This investigation didn’t stop with Scott Rothstein.”

Client trust accounts will be the initial focus of Florida Bar investigators. They will first determine if false representations were made when they were certified, and whether Rothstein’s former colleagues misappropriated money from the accounts.

According to federal prosecutors, Rothstein’s clients were informed they were purchasing blocks of structured settlements from cases involving confidential agreements but the settlements did not exist.

Records Show Rothstein’s Law Firm Gave More than $6 Million to Non-profits Last Year

Aine Ford — Wed, 23 Dec 2009 21:56:20 +0000

According to financial records made public late Tuesday, the law firm of accused financial swindler Scott Rothstein gave a whopping $6.06 million to non-profit groups and other foundations last year.

Records show that the bankrupt Rothstein Rosenfeldt Adler firm made these contributions to at least 113 organizations. These documents were part of a filing in U.S. Bankruptcy Court by law the law firm’s trustee, Herbert Stettin.

Rothstein, accused of running a $1.2 billion Ponzi scheme out of his law office, is now sitting in the Federal Detention Center in Miami and at least thirty charities received letters last month warning them to return any money donated by Rothstein’s firm. Charities that do not return the money are at risk of being sued.

Of the money donated, the firm gave $2.5 million to the attorney’s own foundation, the Rothstein Family Foundation, and another $1 million went to the Florida Care Foundation, who have agreed to return the money.

More Details in Rothstein Story – UPDATED

joshua — Tue, 03 Nov 2009 18:21:49 +0000

For our original article on the story, click here. Scott Rothstein, founding partner of the Florida firm Rothstein Rosenfeldt Adler, remains incommunicado after taking off last week. He is believed to be in Morocco, and his attorney has said he would return today. The firm has hired a former US attorney to investigate allegations that Rothstein did something improper with an investment vehicle, and has asked the Florida court to dissolve the firm, putting its assets in the hands of a receiver.

Now we have more details on the alleged misconduct of Rothstein. Rothstein is reported to have set up a side business selling shares in settlements. Investors would buy out structured settlements from clients at a discount and in turn receive payments as the structured settlements resolved over time. The problem is that Rothstein may have been selling shares in fictitious settlements and is alleged to have disappeared with anywhere from $200 to $300 million.

Rothstein has been a major contributor to Republican politics in Florida. Ellyn Bogdanoff, a member of the state legislature who was the biggest benefactor of Rothstein’s donations, said today that she would be returning any political donations from Rothstein.

The firm’s website, rra-law.com is currently blank, and the pages linking to Rothstein are now inactive.

UPDATE:

Rothstein is back in Miami and police have surrounded his firm.