Rothstein Rosenfeldt Adler, Ft. Lauderdale, Law Firm Dissolution, Ponzi Scheme

[Rosenfeldt said Rothstein had handled the firm's accounts while he ran the
legal side of the law company]


THAT IS NO EXCUSE!

[forum_admin]

Offices of Rothstein Rosenfeldt Adler PA, the South Florida law firm at the center of a fraud investigation, were searched by federal agents who seized items including account statements, e-mail and a Ferrari key.

Agents seized e-mail, bank statements, “one white envelope containing significant fund transfers from RRA” and the car key, they said in an inventory of the search.

The FBI took documents and a folder titled “settlement statement,” trust statements, deal folders, jewelry certificates, investor promissory notes and an itinerary for an Oct. 26 flight to Morocco, according to the FBI’s inventory list.

More...

Law Firm Search by FBI Yields E-Mail, Ferrari Key (Update1) - Bloomberg.com



Rothstein, Rosenfeldt And Adler, P.A.

Does the State Bar have any insurance for our lost funds? Or can we sue the malpractice carriers for the losses?

I only have approx. 20k there but still, it's a lot for me.

[WSJ Law Blog]

Attorney Scott Rothstein

We’re not sure that Fort Lauderdale lawyer Scott Rothstein has all that much to be elated about these days. After all, he’s been accused by investors in an alleged Ponzi scheme of stealing hundreds of millions of dollars. He’s being investigated by the FBI, and the law firm that he co-founded is on the brink of collapsing.

Still, Rothstein chatted briefly with a Miami Herald reporter on Sunday, and put on a brave face. “I am sitting here smoking cigars with Marc,” Rothstein told the Herald, referring to his attorney Marc Nurik. “Rumors of my demise have been greatly exaggerated. I’m doing pretty good.” Click here for previous LB coverage of the Rothstein situation.

Federal authorities began questioning Rothstein upon his return from Morocco last Tuesday and raided the law firm on Wednesday.

Rothstein, who is reportedly cooperating with investigators, is under federal surveillance at an undisclosed South Florida location.

Sources familiar with the investigation told the Herald that authorities could arrest him with evidence collected so far, but they are trying to build a conspiracy case around Rothstein and possibly others who participated in his alleged investment scam under the mantle of his law firm.

Rothstein said Sunday he could not disclose his whereabouts because otherwise “Marc will break my head.” Rothstein then handed the telephone to his lawyer, Nurik, who said that, in fact, they had not been smoking cigars.

“He is under a lot of pressure,” said Nurik, who had worked at Rothstein’s law firm but stepped down to represent him. “I don’t want anybody to think he is having a good time.”

During the brief interview with Nurik, Rothstein could be heard heartily laughing in the background.

Nurik would not disclose Rothstein’s whereabouts — a Florida location that Nurik said he — not federal authorities — chose.

“I have him hidden,” Nurik said. “I’m not going to tell anybody where, including the government. I don’t know where people are coming up with this stuff. I have been discussing his case with the government as any defense counsel would under these circumstances.

“I have been in contact with the government,” Nurik said. “My client is at an undisclosed location of my choosing and he is talking to no one but me. He hasn’t even met with his family.”

[forum_admin]

Scott Rothstein, the Florida lawyer whose firm asked U.S. prosecutors to investigate the alleged disappearance of $500 million in investor funds, was accused in a government filing of conducting a “Ponzi” scheme.

Acting U.S. Attorney Jeffrey Sloman in Miami is seeking the civil forfeiture of eight properties linked to the lawyer.

“There is probable cause to believe that the above- described defendant properties were acquired in connection with a ‘Ponzi’ scheme, conducted by attorney Scott Rothstein” and others, according to Sloman’s filing yesterday in federal court in Fort Lauderdale, Florida.

More...

U.S. Seeks Forfeiture From Florida Law Firm Founder Rothstein - Bloomberg.com

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Creditors of the Florida law firm Rothstein Rosenfeldt Adler PA, whose co-founder is suspected of running a multimillion-dollar Ponzi scheme, sought to push the firm into bankruptcy.

The creditors, who claim they are owed more than $1.1 million they invested in lawsuit settlements, filed an involuntary bankruptcy petition yesterday against the firm in Fort Lauderdale.

Rothstein Rosenfeldt on Nov. 2 sued Rothstein and asked a judge to dissolve the firm. The next day the judge appointed a receiver to take over the firm’s finances.

More...

Creditors of Florida Law Firm File Bankruptcy Case (Update1) - Bloomberg.com

[WSJ Law Blog]

FBI: Investments With Rothstein Could Top $1B



Fort Lauderdale attorney Scott Rothstein

We’re not yet at Bernie Madoff levels, but the allegations getting lodged against Miami lawyer Scott Rothstein seem to get bigger and bigger with each passing day.

The latest: a top FBI official told the AP on Thursday that the suspected Ponzi scheme allegedly operated by Rothstein is likely to exceed $1 billion and involved thousands of investors in the U.S. and abroad.

John Gillies, special agent in charge of the FBI’s Miami field office, said investigators want more investors with attorney Scott Rothstein to come forward so they can better understand the full scope of the alleged scam. Gillies said the probe is likely to take weeks before any criminal charges are filed. Click here for all past LB coverage of the Rothstein saga.

“We are conducting this investigation in a timely manner. But we will not be pushed. We are far from over,” Gillies said.

The FBI set up a dedicated e-mail address for the investors with Rothstein, who was offering huge returns through legal settlements that investigators say were pure fiction. The FBI also set up a toll free number, with callers asked to select the “Rothstein Option.”

Profits of 20 percent or more were commonly promised, but a civil forfeiture complaint contends that Rothstein was running a classic Ponzi scheme in which money from new investors was used to pay off older ones — and Rothstein kept most of it himself.

“We’re seeking any information from victims who may be out there. We believe there’s information out there,” Gillies said. “I would put this as one of the biggest alleged fraud schemes we’ve investigated in South Florida.”

Rothstein’s attorney had no immediate comment Thursday.

[forum_admin]

THE FBI RELEASED THE FOLLOWING STATEMENT:

The Miami Division of the Federal Bureau of Investigation (FBI) and the Miami Field Office of the Internal Revenue Service (IRS) are seeking information from individuals who have invested in the Rothstein Structured Settlement Investment (RSSI) or from individuals who have information that would be helpful to the investigation. To facilitate information gathering, the FBI has established a dedicated e-mail address and an informational telephone line 1-800-CALL-FBI, “Rothstein Option.”

Details of the investigation cannot be discussed at this time, as the investigation is ongoing. However, the FBI and IRS are seeking to identify victims and to obtain any information to determine the extent of any potential fraud.

In an effort to determine the scope of the matter and the amount of losses that may be involved, investigators are requesting that individuals provide:

• Basic contact information (name, address, telephone numbers, e-mail address.)
• Amount of investments/losses with the Rothstein Structured Settlement Investment.
• Whether you can verify your investments by providing the most recent statements.
• Any additional information that may be helpful.

Information may be provided via dedicated e-mail address Rothstein.Investment@ic.fbi.gov or to informational telephone line 1-800-CALL-FBI, “Rothstein Option” (1-800-225-5324.) If you have investigative information that may aid the criminal investigation, you may also submit it via email or telephone. For those who would like to return funds received from Rothstein please call the 1-800 number and someone will get back with you with specific instructions on how to return the funds.

Hard copy documentation may be mailed to:

FBI Victim Assistance Program
Rothstein Investment
16320 NW 2nd Avenue
Miami, Florida 33169

If it is determined that you are a victim, the FBI will be in touch with you. Please note that due to the expected number of responses, it may be several days before you are contacted.

When you work at a large law firm you have a Law Firm Administrator that over sees all financial matters. Each attorney also has a paralegal that draft documents. I'm sure that everyone in the office knew what was going on. This is just another case of looking the other way while someone commites a crime.

[forum_admin]

The FBI says an alleged fraud involving prominent Fort Lauderdale lawyer Scott Rothstein could exceed $1 billion. Rothstein has not been charged but officials say the investigation is complex. (Nov. 12)

Potential victims of Scott Rothstein can contact the FBI by e-mail at rothstein.investment@ic.fbi.gov.
Or they can call 800-CALLFBI (800-225-5324).

UPDATE 14-11-2009

By Brittany Wallman, Sun Sentinel

Twenty-eight city police officials, including captains, majors, undercover officers and the department spokesman, helped guard the home and businesses of attorney Scott Rothstein while, federal agents say, he ran a $1 billion Ponzi scheme.

Records released Friday show the off-duty work by Fort Lauderdale police at Rothstein's home in Harbor Beach, his Bova Prime restaurant on Las Olas, and the nearby Rothstein Rosenfeldt Adler law firm was so heavy, it required two police officials to coordinate. Rothstein's cadre of uniformed officers included many high-ranking supervisors in the department. Two coordinators, Sgt. Steve Greenlaw and Officer DeAnna Garcia, were paid a 5.5 percent cut of the security-guarding total each week.

Rothstein has not been charged or arrested, but federal agents seized his assets this week.

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High-ranking police officers guarded over Rothstein


FBI agents also are investigating other people in Rothstein's inner circle who might have been involved, both in his law practice and at a finance firm in the same Las Olas Boulevard building as the Rothstein Rosenfeldt Adler law firm.

They include Rothstein's legal and business advisor, David Boden; the law firm's chief financial officer, Irene Stay; the law firm's chief operating officer, Debra Villegas; and Rothstein's uncle, Bill Brock, who went with him on a trip to Morocco in late October when the investment scandal exploded.

Jordi Guso, a bankruptcy attorney for the law firm, said in court Thursday that Rothstein Rosenfeldt Adler is heading toward bankruptcy as early as Monday.

More...

FBI seeking help from alleged Rothstein victims