JD Journal » scott rothstein

Morning Roundup

joshua — Thu, 10 Jun 2010 10:47:46 +0000

Good morning everyone! Today is Thursday, June 10th. Here’s a quick recap of yesterday’s stories.

Scott Rothstein, who admitted to operating a $1.2 billion Ponzi scheme, was sentenced to 50 years in prison by a Florida judge…

The proposed transatlantic merger between Sonnenschein Nath & Rosenthal and Denton Wilde Sapte was approved by the firm’s partnerships…

According to the quarterly Robert Half Legal Hiring Index the legal world is optimistic more jobs will be forthcoming in the third quarter of the year…

Former Lindquist & Vennum partner Michael Scott Margulies pled guilty to embezzling around $2 million from his clients and the firm…

Dechert announced plans to open an office in Dublin, Ireland…

Trovillion, Inveiss & Demakis added two partners…

Disbarred Florida Lawyer Gets 50 Years for Ponzi Scheme

joshua — Wed, 09 Jun 2010 21:02:37 +0000

Scott Rothstein, the disbarred South Florida attorney who admitted to operating a $1.2 billion Ponzi scheme, was sentenced to 50 years in prison by a Florida judge Wednesday.

The sentence imposed by U.S. District Judge James I. Cohn was actually longer than the 40 years prosecutors had been seeking. Rothstein, 48, was hoping for a 30-year sentence given the fact he offered extensive cooperation with investigators.

Reuters reports Rothstein’s scheme, which first began to disintegrate last fall, involved selling investors discounted stakes in fraudulent settlements of sexual-harassment and whistleblower lawsuits. He promised investors the full proceeds once the cases were settled, but instead Rothstein used money from new investors to pay back old ones.

The money Rothstein acquired from the scheme was used to fund his 70-attorney law firm, Rothstein Rosenfeldt Adler, as well as a lavish lifestyle that included at least two dozen homes.

Rothstein admitted to the scheme in January.

Morning Roundup

joshua — Thu, 28 Jan 2010 13:11:21 +0000

Good morning everyone! Today is Thursday, January 28, and here’s a look back at yesterday’s headlines…

President Obama took on the Supreme Court in last night’s State of the Union…

James O’Keefe’s lawyer says his client was not trying to bug Senator Landrieu’s phones…

Reed Smith picked up two corporate partners in New York…

Four partners jumped from Paul Hastings to Haynes & Boone…

Tipsters report staff layoffsat Brown McCarroll…

Read our pregame analysis of the State of the Union and see what we got right… and wrong…

Sidley Austin added an IP lawyer in San Francisco…

Gregory Craig returned to private practiceand has landed at Skadden…

Four Alston & Bird partners have jumped ship to open their own firm…

Baker & Daniels picked up a senior insurance lawyer….

A Hatian law firm has reopened amid the chaos…

Northwestern Law dovetails on a student loan program mentioned by the President in the SotU…

Scott Rothstein appeared in court and plead guilty yesterday…

McDonough ranks top in the nation on percentage of female partners…

and Boeing has a new chief counsel…

Scott Rothstein to Plead Guilty Today

sara — Wed, 27 Jan 2010 13:49:00 +0000

Disbarred attorney Scott Rothstein will plead guilty to running a $1.2 billion Ponzi scam in a Fort Lauderdale , Florida federal court today. Rothstein was charged in December with five counts of racketeering, fraud and money laundering. He faces up to 100 years in prison. He may only receive a 30 year sentence because he returned to the United States after fleeing abroad and cooperated with authorities.

Rothstein cofounded Rothstein Rosenfeldt Adler in 2002. He made hundreds of millions of dollars selling fake employment discrimination and other civil settlements to wealthy investors. Rothstein looted 40 investor and client trusts at TD Bank and was given almost uninhibited access to their accounts. Rothstein kept his con afloat by paying off old investors with money from new ones, until one investor reported his growing suspicions.

Investigators are scrutinizing others involved with Rothstein’s operations at this time.

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.

Rothstein Firm’s Furnishings to be Auctioned

aostler — Tue, 29 Dec 2009 17:44:16 +0000

Scott Rothstein’s office furniture inside the office of Rothstein Rosenfeldt & Adler, will be sold to the highest bidder at an auction on Jan. 23 in Tamarac, Fla.

U.S. Bankruptcy Judge Raymond B. Ray approved a request last week by the firm’s bankruptcy trustee to allow Fisher Auction to sell everything inside the office, including oriental rugs and some personal effects. Former attorneys at the firm and other employees have already removed their personal items.

Rothstein, who is accused of running a $1.2 billion Ponzi scheme tied to nonexistent settlements through law firm bank accounts, has been jailed since Dec. 1.

The proceeds from the auction will be added to the bankruptcy estate and be used to compensate victims of the alleged fraud.

Among the items that will be auctioned: Queen Anne wing chairs, a Louis XIV tapestry, Oriental rugs and marble-top tables.

Morning Roundup

joshua — Mon, 28 Dec 2009 14:51:26 +0000

Good morning everyone! Today is Monday, December 28, and here’s a look back at the news from last week.

Kirkland & Ellis paid out bonuses…

Newly released records detail Rothstein’s non profit activities…

Cravath confirmed that no new partners will be named this year…

A dozen lawyers have left Dickstein Shapiro….

A federal appelate court has upheld a large judgement against Microsoft….

and Weil Gotshal’s bonuses are out…

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.

Rothstein to Face Criminal Charges

joshua — Tue, 01 Dec 2009 17:00:38 +0000

Scott Rothstein, the Florida attorney whose alleged ponzi scheme has been chronicled here over the last two weeks, will be charged today with criminal racketeering according to a story from the AP. The government has already initiated seizures of his property, including a large and valuable car collection and a New York condo in the same building as the one seized from Marc Drier.

Rothstein is accused of operating a ponzi scheme based on selling shares in structured payouts from fictitious lawsuits. The FBI has estimated the proceeds from the fraud at $1 billion.

Morning Roundup

joshua — Fri, 27 Nov 2009 17:30:41 +0000

Good morning one and all! It’s Friday, November 27, and now that the triptophan has hopefully worn off, here’s a look at wednesday’s headlines.

Scott Rothstein has been officialy disbarred…

Debevoise & Plimpton announced their bonus schedules…

And so did Davis Polk…

and in Switzerland, film director Roman Polanski has been granted bail…

Rothstein Disbarment Official

joshua — Wed, 25 Nov 2009 21:31:41 +0000

In an update to this story, Scott Rothstein, the Florida lawyer accused of running a massive ponzi scheme, has been officially disbarred. Although he submitted his request to the Florida Bar Association earlier this week to have his license stripped, it did not become official until action was taken by the State Supreme Court. The Florida Bar has removed Rothstein from a grievance committee that considers ethics complaints against lawyers as well.

Rothstein also lost his seat on the Fourth District Court of Appeal Judicial Nominating Commission. Governor Crist, who appointed Rothstein to the seat a few days before Rothstein donated $140,000 to the state Republican Party, suspended him on Tuesday. There is no requirement that a member of the commission be a lawyer. The Republican Party, along with several individual politicians, has returned the donation.

Morning Roundup

joshua — Mon, 23 Nov 2009 17:31:33 +0000

Good morning everyone! As we head into Thanksgiving week, things have slowed down a bit. Here’s a look back at the end of last week.

Seyfarth Shaw has redeferred half of its incoming class and cut salaries for all first years…

Wilkie Farr and Simpson Thatcher have both put out their bonus schedules….

Scott Rothstein has made a written request for disbarrment….

Skadden has also settled on bonuses, and they look very familiar…

and I mused ahead on the trial and likely conviction and execution of Khalid Sheikh Mohammad.

Scott Rothstein Requests Disbarment

joshua — Thu, 19 Nov 2009 21:51:52 +0000

Bowing to the inevitable, Scott Rothstein has formally requested his own permanent disbarment. The south Florida lawyer whose firm has dissolved under a cloud of scandal after a ponzi scheme run by Rothstein came to light sent the Florida Bar a written request to be disbarred rather than face a certain disciplinary hearing. In what can only be called a monumental understatement, the president of the Bar, Jesse Diner, said “”While the case is very complex, it became evident that bar rules may have been violated”.

Rothstein is accused of selling investors shares in structured settlements that did not exist.

New Allegations Against Scott Rothstein

joshua — Wed, 11 Nov 2009 21:57:02 +0000

New allegations have emerged against Scott Rothstein, the Florida lawyer accused of running a ponzi scheme and dragging his firm down in the process. These new allegations are a little hard to believe, if only because it’s hard to imagine that Rothstein could have possibly expected to get away with it.

The story comes from the Miami Herald. According to the Herald, Rothstein’s friend Ed Morse hired Rothstein to sue an interior decorator for breach of contract. After losing the case, Rothstein is alleged to have told Morse that he won the case and that the interior decorator owed $23 million. To collect on the judgement, Rothstein suggested they seize a Cayman Island’s account belonging to the decorator. The catch is that in order to seize the money, Morse would first have to post a bond for 2.5 times the amount to be seized, or $57 million. In fact, there was no bank account, no court order to seize it, and no bond. Morse handed over the money to Rothstein and appears to have become yet another of his victims.

Here’s hoping Rothstein does the right thing.

Morning Roundup

joshua — Wed, 11 Nov 2009 18:13:49 +0000

Today is Wednesday, November 11. At 11 am on November 11, 1918, all fighting stopped in World War 1 and Woodrow Wilson proclaimed the day Armistice Day. It wasn’t until Veterans started to return from World War 2 that the day became a day to celebrate all of our vets.

Here’s a look back at yesterday’s news…

Scott Rothstein was spotted and filmed having lunch and sounding upbeat…

Covington & Burling are freezing associate salaries…

Katten split its deferrals into three groups, with group number three losing their jobs…

Reed Smith cut associate salaries….

and the DC Sniper was executed by lethal injection last night….

In memoriam for Veterans Day:

Michael Cahill

Eduardo Caraveo

Justin DeCrow

John Gaffaney

Frederick Greene

Jason Hunt

Amy Krueger

Thomas Nemelka

Michael Pearson

Russell Seager

Francheska Velez

Juanita Warman

Kham Xiong

Scott Rothstein in his own words

joshua — Tue, 10 Nov 2009 21:49:22 +0000

With the news that eight of his properties and several vintage automobiles have been siezed by prosecutors, you might expect that Scott Rothstein would be hunkered down licking his wounds somewhere. Such is not the case. Here’s Scott having lunch, sounding positively upbeat and promising “to do the right thing”

More Bad News for Scott Rothstein

joshua — Tue, 10 Nov 2009 01:26:24 +0000

Scott Rothstein, the lawyer whose firm has gone into receivership after he was accused of defrauding investors through a ponzi scheme, faces more bad news today. The government is seeking civil forfeiture of eight properties belonging to Rothstein, alleging that they were financed with ill gotten gains.

Meanwhile, the court has ordered Toronto Dominion Bank to turn over all records related to Rothstein and his firm to the cour appointed receiver.

This is an update to a story we’ve been following for a week. Earlier reports can be found here and here.

Wednesday Roundup

joshua — Wed, 04 Nov 2009 13:10:07 +0000

Good morning everyone! Getting the day started early this morning with today’s look back at yesterday’s news.

Eckert Seamans snags four lawyers from Troutman Sanders and opens an office in Virginia.

Scott Rothstein is back in Florida. We will continue to update this story as it develops…

Winston & Strawn defers the already deferred….

and law blog abovethelaw.com has been sued…

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.

Something Amiss at Rothstein Rosenfeldt Adler

joshua — Mon, 02 Nov 2009 17:45:54 +0000

When a prominent law firm hires an ex US attorney to investigate one of its own partners, something has gone terribly awry. That’s the situation in Florida where founding partner Scott Rothstein, currently believed to be in Morocco, is being investigated by former US Attorney Kendall Coffey at the firm’s request. The allegations involve an investment scheme gone bad.

Rothstein’s lawyer says that Rothstein has not fled the country but has gone away to clear his head and will be back at the end of the week. The firm is open for business today but there is some speculation that it will not survive.

UPDATE: Stuart Rosenfeldt, co founder of the firm, has asked the court to dissolve the firm and and appoint a receiver to handle the firm’s finances.