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Rothstein Roundup: Accused Fraudster Meets With Feds And Estimates Of Scheme's Size Soar

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Back in south Florida after a trip to Morocco, the high-profile attorney who has been sued for allegedly operating a fraud scheme out of his law office met with federal prosecutors last night and criminal charges are likely to come soon, the Broward-Palm Beach New Times reports.

In a suit filed Monday, the law firm of politically-connected Fort Lauderdale attorney Scott Rothstein alleged that he set up a side business that sold phony legal settlements to outside investors with promises of guaranteed high returns.

There have been a flurry of developments in the Rothstein case in the last 24 hours, so we rounded up a few articles worth taking a look at:

  • Stuart Rosenfeldt, co-founder of the firm Rothstein, Rosenfeldt and Adler, says trust accounts set up by Rothstein that contained about $500 million two weeks ago are now empty. Bloomberg has the details. The size of the alleged fraud was put by one investor Monday at $100 million.

  • Late last week Rothstein sent a frantic mass text message to his firm's partners in which he seemed to be contemplating suicide. "I am a fool. ... Please take care of yourselves and please protect Kimmie (Rothstein's wife). ... I hope God allows me to see you on the other side. Love, Scott." The South Florida Sun Sentinel has the full text.

  • The US Senate campaign of Florida Governor -- and Rothstein friend -- Charlie Crist says it will give back the $9,600 in personal donations from Rothstein and his wife. The New York Times has that and more on the Rothsteins' considerable largesse.

  • Venture capitalist Doug Van Allmen, who invested a substantial sum with Rothstein, wonders in an interview with the Broward-Palm Beach New Times how he allowed himself to be taken advantage of.

  • An investor who was solicited by a broker working for Rothstein tells Bloomberg that the attorney's office had pictures of Rothstein with Gov. Arnold Schwarzenegger, a lizard-skin couch, and a bank of televisions. And Rothstein himself wore a pistol strapped to his ankle.

  • A Broward judge has put Rothstein's firm in receivership, granting a request by the firm, and forensic accountants will examine the books.

We'll have more on the political angle later today, so stay tuned.

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2 comments

Recommend Recommend (3)

November 4, 2009 1:28 PM   

From the blogs.

Rothstein employee Debra Villegas handled the mourning of the murder of best friend and fellow employee Mellisa Lewis by buying a new car & house the day before estranged husband Tony was arrested.

Once old Tony was behind bars, prosecutor Howard Scheinberg packed up and moved to Rothstein's law firm.

Talk about an inside job. You can't make this stuff up.

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November 4, 2009 2:15 PM   

Link please?

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