Scott Rothstein

Single Group Of Hedge Funds Claim $775M Hit In Alleged FL Scam

Justin Elliott | December 4, 2009, 12:11PM

Scott Rothstein

We had wondered how the alleged Ponzi scheme of Scott Rothstein, an attorney, not a financier like Bernie Madoff, could reach the sum of $1.2 billion.

The latest eye-popping number in the case seems to provide an answer: one man's hedge funds had $775 million tied up in Rothstein's allegedly phony investments. And now that man, George Levin, is being accused of trying to help Rothstein prolong the scheme.

Five of Fort Lauderdale investor Levin's Banyon funds are in the list of the top 20 Rothstein creditors, compiled by the trustee in the case. That accounts for about 65 percent of the money in the alleged scheme.

Read more »

Bobby Jindal

Alleged Fraudster Threw Versace Mansion Fundraiser For Jindal (See The Invitation)

Justin Elliott | December 4, 2009, 11:04AM

The Versace Mansion

Here's a fun coda on Bobby Jindal's links to Scott Rothstein, the Fort Lauderdale lawyer who is accused of a $1.2 billion Ponzi scheme: at the time of the Republican governors' conference in Miami last year, Rothstein and his wife hosted a $10,000-per-couple cocktail reception for Jindal at Casa Casuarina, the mansion where designer Gianni Versace was murdered in 1997.

We already knew about a pre-game fundraiser for the Louisiana governor, co-chaired by Rothstein, that was held the day of the LSU-UF matchup in October 2008. After TPMmuckraker reported that event, Jindal said he would give back $30,000 to a victim's compensation fund, once one was created.

Read more »

Scott Rothstein

An Unbelievable Spree: How Scott Rothstein Spent His Money

Justin Elliott | December 3, 2009, 11:20AM

Scott Rothstein

In the years spent living off the profits of his alleged $1 billion Ponzi scheme, Florida attorney Scott Rothstein went on a Mike Tysonesque buying spree that's likely to make even the denizens of money-drenched Fort Lauderdale blush.

We already knew about the $52,000 birthday cake for Gov. Charlie Crist, and the special performance of Life in the Fast Lane for Rothstein's wife at an Eagles concert, but court papers filed earlier this week show the disgraced attorney also indulged his taste for gaudy jewelry, luxury automobiles, and real estate, even buying a 10% stake in the Versace Mansion in Miami Beach.

Read more »

Scott Rothstein

Rothstein Charges Released: 'It Was All Smoke And Mirrors'

Justin Elliott | December 1, 2009, 4:01PM

Scott Rothstein

Charges released this afternoon against Scott Rothstein, who was arrested earlier today, provide new details on how his alleged Ponzi scheme worked. He plead not guilty this morning.

The five-count criminal information seeks forfeiture of $1.2 billion, including bank accounts and no less than 24 luxury cars. The full 34-page document, released by the U.S. Attorney for southern Florida, can be read below (see page 23 for the car list).

"Scott Rothstein appeared to be a charismatic, reputable attorney one could trust to invest one's money and make a sizeable profit," said Miami FBI agent John Gillies, in a statement today. "We now know it was all smoke and mirrors."

Read more »

Scott Rothstein

Rothstein Arrested By FBI On Racketeering Charge

Justin Elliott | December 1, 2009, 9:39AM

Scott Rothstein

A month after he returned to Florida from a brief trip to Morocco, prominent attorney Scott Rothstein was arrested by federal authorities this morning, accused of running a $1 billion investment fraud, the Miami Herald reports.

Rothstein, who has reportedly cooperated with authorities in recent weeks, is expected to plead guilty to a RICO conspiracy charge, according to the Herald.

Investors have accused Rothstein of promising them big returns on phony legal settlements he sold out of a side business at his Fort Lauderdale firm, Rothstein, Rosenfeldt, and Adler. Over the past seven years, he has had a meteoric rise through the South Florida business and political elite, doling out millions in campaign and philanthropic donations along the way.

Read more »