Ponzi-Scheme Mastermind’s Law Firm Closer to Dissolution
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

The bankruptcy disclosure statement for Ponzi scheme mastermind Scott Rothstein’s law firm was approved by a judge yesterday in Florida Bankruptcy Court. Judge Raymond B. Ray, who is overseeing the liquidation of Rothstein, Rosenfeldt & Adler, approved the statement and set a confirmation hearing for July and allowed creditors to vote on a repayment plan, bringing the firm several steps closer to dissolution.

Scott Rothstein is currently serving a 50-year sentence for conspiracy to commit fraud. His billion dollar Ponzi-scheme involved selling investors stakes in sex- and employment-discrimination cases that did not exist, and it unraveled in 2009, and implicated ten other people, including his wife, and Toronto-Dominion Bank, which was sanctioned in August for willfully concealing evidence relevant to a trial over whether it aided Rothstein’s scheme.


The firm’s investors, however, are opposing the repayment plan proposed by current trustee Herbert Stettin.  Bloomberg reports that the terms of the settlement would prevent those involved from pursuing further action against TD Bank. The plan does require TD Bank to pay up $72 million to remove the threat of litigation, and the bank has already paid more the $250 million in investor settlements, and lost a $67 million verdict in the only case to go to trial.

One group of 80 investors is claiming an additional $228 million in losses, and Bill Tropin, the attorney for a separate group of investors, says that Settin’s plan would see his clients lose $360 million in potential claims against TD Bank.

The creditors committee, which has opposed previous plans, has put their support behind the new plan, as did several other creditors. “We just don’t understand why creditors are objecting to a plan that gives them 100 percent in a Ponzi scheme,” Michael Goldberg, the attorney for the creditors committee told Bloomberg.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!



Paralegal - Family Law

USA-FL-Dade City

$40,000 to $50,000 Annually Benefits Offered 401K Employment Type Full-Time Why Work ...

Apply now

Legal Assistant

USA-CA-Los Angeles

In person job starting December or January in Los Angeles. We are looking for a legal assistant or p...

Apply now

Associate Attorney, Litigation


Full Job Description Cagle Pugh, Ltd. LLP is a full-service law firm with offices in Austin, Dall...

Apply now

Litigation Attorney

USA-FL-Coral Gables

ATTORNEY JOB DESCRIPTION De La Rosa Law, is seeking a skilled and successful personal injury a...

Apply now




Search Now

Commercial Litigation Associate Attorney


Boston office of a BCG Attorney Search Top Ranked Law Firm seeks a commercial litigation associate a...

Apply Now

Foreclosure Attorney


Atlanta office of a BCG Attorney Search Top Ranked Law Firm seeks foreclosure attorney with experien...

Apply Now

Foreclosure Attorney


Memphis office of a BCG Attorney Search Top Ranked Law Firm seeks foreclosure attorney with experien...

Apply Now


To Top