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.