Rothstein Rosenfeldt Adler, Ft. Lauderdale, Law Firm Dissolution

The distressing aspect of this story is that we're not shocked by it, having become immune to further upset by the Dreirs, the Madoffs, and other assorted scamsters. A Florida law firm embroiled in dishonesty -- who woulda thunk it??

[WSJ_law_blog]

So what’s going on in the Rothstein Rosenfeldt Adler situation? Frankly, we’re waiting for the other shoe to drop — waiting for attorney Scott Rothstein to return from wherever he’s been camped out for the last few days; waiting for word from the U.S. attorney’s office; waiting, in short, for more information.

Those looking to get up to speed, might check out our posts from Monday (click here); Nathan Koppel’s story in the WSJ Tuesday; this story in the South Florida Sun-Sentinel; and this Miami Herald piece.

So, for now, here’s what we know:

On Monday, the Fort Lauderdale-based firm asked a Florida court to dissolve it amid allegations that substantial amounts of money are missing from accounts created by Rothstein, the firm’s co-founder.

• A spokesman for the law firm said it has launched an internal probe focused on a business Rothstein started that involved selling purported legal settlements to investors. He said the firm has contacted the U.S. attorney’s office in Miami. At least one of the investors—Banyan, a Fort Lauderdale investment firm—has also contacted the U.S. attorney’s office, which declined to comment on the matter.
• The “business” may have worked like this: The investors in the venture would pay cash upfront to people owed money from court cases in exchange for the right to collect the full amount of the settlement at a later date, a partner at the firm said. But according to the state court filing in which the firm is seeking dissolution, investors allege that Rothstein may have sold settlements that didn’t exist.
• The firm’s co-founder, Stuart Rosenfeldt, said Rothstein hasn’t been in the office since about the middle of last week, and when Rosenfeldt asked about him, Rothstein’s assistant said he had left, citing a family emergency. But Rothstein’s lawyer told Rosenfeldt his client would return to Fort Lauderdale Tuesday.
• In a text message sent Saturday, Rothstein apologized to firm lawyers, Rosenfeldt said. In the note, according to Rosenfeldt, Rothstein described himself as “a fool” and said he was sorry for any harm he had done to his colleagues.
• Rothstein is living in the fast lane. One of his homes, a house on Castilla Isle in Fort Lauderdale, is appraised for tax purposes at $1.89 million. Another house on the street that public records show also belongs him is appraised at $1.3 million. Public records also indicate that Mr. Rothstein has owned an enviable collection of cars, including a 2007 Lamborghini, a 2001 Bentley and a 2007 silver Rolls Royce.

[sandra]

The high-profile Fort Lauderdale lawyer accused by investors and law partners of stealing millions of dollars flew back from Morocco on Tuesday from an overseas trip to meet federal authorities.

Rothstein, suspected of running a Ponzi scheme, apparently drained vast sums of money from the firm, his partners say.

"I believe there are about $500,000 in operating funds -- maybe slightly more,'' Grant Smith, an attorney at the firm, said at a court hearing. He said the firm set up new bank accounts Tuesday for funds that started to come in over the weekend.

Most of the firm's lawyers have agreed to forgo their paychecks due Nov. 13.

On Oct. 31, Rothstein sent his law partners a text message that indicated he was contemplating suicide, sunsentinel.com reported Tuesday night.

>>> Back from Morocco, Rothstein faces feds - Florida and Local Politics - MiamiHerald.com

Source: The Miami Herald

Btw, Rothstein purchased in August the former Gianni Versace mansion in South Beach !!!



Photo: From Wikipedia, the free encyclopedia

Versace was shot dead on July 15, 1997, aged 50, on the steps of his Miami Beach mansion as he returned from a morning walk on Ocean Drive. It was his custom to take a stroll to a coffee shop that received international periodicals, to read the Italian-language newspapers. He was murdered by Andrew Cunanan, who used the same gun to commit suicide on a boat several days later. Versace's body was cremated and his ashes returned to the family's estate near Cernobbio, Italy.

more info:

The Associated Press: Prominent Fla. lawyer's sales pitch called suspect


Quote:

It worked this way: Rothstein said his firm had negotiated a $900,000 settlement that would pay out over several months. The person who won the settlement needed money right away and was willing to "sell" the rights for $660,000. Under the deal, Sakowitz and his friends would pocket the $240,000 profit in just three months.

You lay people are stupid. Everyone shoud be required to go to law school in order to properly function in society. In any event, if you have money entrusted to this firm you are screwed. In the future hire anglo lawyers.

Your comments don't show you to be too bright.

...and it seems like you are happy we all lost our money.

Rosenfeldt is the Mrs. Madoff of this case.


He is liable with all his life fortune as he knew what was going on just as Mrs. Madoff did.

Don't let the fake tears fool you...she did the same thing at first too.

It will only take a little time--mark my words!

Every lawyer at the firm can be held liable.

I spoke extensively today with a lawyer that sues law firms for fraud. They cannot hide behind corporate structures. And the last several paychecks (at least) of all lawyers can be called back. They can be sued and their assets attached!!!

The FBI and IRS are everywhere. Grabbing everything.

Some documents seem to show Rosenfeldt had all the fraudulent account information. Maybe your Madoff analogy is correct.