Scott Rothstein

Scott Rothstein Sentenced To 50 Years In Prison For Ponzi Scheme

Eric Lach | June 9, 2010, 4:41PM

Scott Rothstein

Scott Rothstein, the ex-lawyer charged with operating a $1.2 billion Ponzi scheme in Florida, has been sentenced to 50 years in prison, the Associated Press reports.

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Scott Rothstein

Scott Rothstein's COO Charged In Connection With Ponzi Scheme

Eric Lach | April 27, 2010, 3:57PM

Scott Rothstein

The chief operating officer of Scott Rothstein's former law firm has been charged with conspiring to launder money from Rothstein's $1.2 billion Ponzi scheme, according to a report in The Miami Herald.

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Scott Rothstein

Report: FL Ponzi Schemer Wore Wire To Snag Alleged Mobster

Justin Elliott | March 16, 2010, 1:01PM

Scott Rothstein

With his $1.2 billion Ponzi scheme crumbling last fall, a desperate Scott Rothstein agreed to cooperate with the Feds in a sting operation that helped bring down an alleged Sicilian mafioso, according to a remarkable new story in the Miami Herald.

Roberto Settineri was arrested in Florida last week on money laundering charges. On the same day, he was charged in Italy with "extortion, drug trafficking, attempted homicide, and other crimes arising from their alleged affiliation with Santa Maria di Gesù, a Sicilian mafia family," according to the FBI.

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Scott Rothstein

Rothstein To Plead Guilty To Ponzi Scheme

Justin Elliott | January 6, 2010, 10:57AM

Scott Rothstein

High-flying Fort Lauderdale attorney Scott Rothstein will plead guilty to charges arising from his alleged $1.2 billion Ponzi scheme in late January, the AP is reporting.

Rothstein, who had in early December plead not guilty, hasn't exactly been lying low since his alleged scheme fell apart last November. A local newspaper got footage of Rothstein enjoying a lunchtime martini at the Capital Grille in Fort Lauderdale in mid-November.

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Fraud

AP: 2009 Was The Year Of The Collapsing Ponzi Scheme

Justin Elliott | December 28, 2009, 6:07PM

Bernie Madoff, Scott Rothstein, and Allen Stanford

Over 150 Ponzi schemes collapsed this year, up from just 40 last year, according to a new and, for TPMmuckraker readers, totally unsurprising tally by the AP.

The wire service reports:

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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.

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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.

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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.

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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."

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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.

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Republican Governors Association

Florida GOP Gov Hopeful To RGA: Time To Give Back Rothstein's $200K

Justin Elliott | November 19, 2009, 3:06PM

Bill McCollum and Scott Rothstein (inset)

Bill McCollum, the likely GOP nominee in the Florida gubernatorial race, is calling on the Republican Governors Association to give back a $200,000 donation from accused fraudster attorney Scott Rothstein, whose political support has become a hot issue in the race.

The statement from McCollum, who is in Austin for the RGA conference this week, comes on the heels of a demand from the Democratic Governors Association that McCollum ask the RGA to give the money back.

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Scott Rothstein

That Was Quick: Jindal Giving $10K From Accused Fraudster To Victims' Fund

Justin Elliott | November 18, 2009, 7:35PM

Louisiana Gov. Bobby Jindal and Scott Rothstein (inset)

Gov. Bobby Jindal will give $10,000 in contributions that he received from accused fraud attorney Scott Rothstein (and from his law firm) to a victims' compensation fund once one is created, says Kyle Plotkin, the governor's press secretary.

The move comes just four hours after TPMmuckraker first reported the news of the donations from Rothstein. The money was given at a pre-game reception held in Jindal's honor before the UF-LSU game in Florida in October 2008. Rothstein was one of nine co-chairs for the event.

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Scott Rothstein

Dem Govs Group Blasts Florida GOP Candidate Over $200K Rothstein Donation

Justin Elliott | November 18, 2009, 5:12PM

Scott Rothstein (inset)

The Democratic Governors Association is going after Bill McCollum, the likely GOP nominee in the race for Florida governor, in the wake of TPMmuckraker's report that the Republican Governors Association got a $200,000 from accused fraudster Scott Rothstein.

"Bill McCollum is spending the week with RGA leadership at their annual fundraiser - in fact, this is the same fundraiser where Rothstein contributed his $200K last year," said DGA communications director Emily DeRose in a statement. "McCollum has two choices: Will he ask the RGA to return the fraudulent money, or will he thank them for using it to boost his chances in Florida?"

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Scott Rothstein

Hut, Hut! Jindal Chomped Up $10K From Accused Fraudster Before Big UF-LSU Game

Justin Elliott | November 18, 2009, 3:18PM

Florida's Jeffrey Demps leaves LSU defenders in the dust, 10/11/08; Louisiana Gov. Bobby Jindal and Scott Rothstein (inset).

Just hours before the University of Florida Gators administered a 51-21 trouncing of LSU last year, Gov. Bobby Jindal was rubbing elbows with well-heeled Florida supporters at a fundraiser-cum-tailgate party held in a private home north of Gainesville.

One of the co-chairs of the October 2008 reception was none other than Scott Rothstein, then a prominent Fort Lauderdale attorney, now accused of a fraud worth $1 billion.

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Scott Rothstein

GOP Govs Group Got Whopping $200,000 From Accused Fraudster

Justin Elliott | November 17, 2009, 9:56AM

Scott Rothstein (inset)

The Republican Governors Association got a $200,000 donation last year from Fort Lauderdale attorney Scott Rothstein, who is being accused of a fraud worth as much as $1 billion. The RGA did not respond to requests for comment about the contribution, and it's not known whether the money has, or will be, returned.

Rothstein was until his fall a top donor and fundraiser for Florida Gov. Charlie Crist, who is now locked in a hotly contested U.S. Senate primary with conservative Marco Rubio.

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Scott Rothstein

Crist Photo With Accused Fraudster: 'Scott -- you're amazing!'

Justin Elliott | November 16, 2009, 9:45AM

Photo with Gov. Crist from Scott Rothstein's office

A photo hanging in the law firm office of accused fraudster Scott Rothstein shows the Fort Lauderdale attorney in a full embrace with Florida Gov. Charlie Crist and features a handwritten note from Crist: "Scott --- you're amazing!"

The story of Rothstein's alleged $1 billion fraud, which TPMmuckraker has been following, was featured on the front page of the weekend edition of the Wall Street Journal, illustrated by the Crist-Rothstein photo.

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Scott Rothstein

FBI: Accused Fraudster's Scheme Could Exceed $1 Billion

Justin Elliott | November 12, 2009, 2:47PM

Scott Rothstein

Estimates of the size of the investment scheme allegedly carried out by politically connected Fort Lauderdale attorney Scott Rothstein have now soared to $1 billion, up from $500 million, which was up from $100 million. Meanwhile, Rothstein is still free and was even taped Monday having a lunchtime cocktail at Fort Lauderdale's Capital Grille.

Civil charges were brought in the case Monday by the IRS and authorities have seized his 87-foot yacht and several sports cars, but Rothstein, who was a top moneyman for Gov. Charlie Crist known for his expensive tastes, has not been charged criminally.

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Scott Rothstein

Accused FL Fraudster Breaks Silence, Quoting Twain From Undisclosed Location

Justin Elliott | November 9, 2009, 10:03AM

Scott Rothstein

"Rumors of my demise have been greatly exaggerated," Fort Lauderdale attorney Scott Rothstein told the Miami Herald Sunday in a brief interview.

Rothstein, who has been accused of orchestrating a fraud that cost investors as much as hundreds of millions of dollars, spoke to the newspaper from an undisclosed location in south Florida, his first public comments since returning from Morocco last week.

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Charlie Crist

Revealed: Pictures Of Gov. Crist's $50K Birthday Cake From Accused Fraudster

Justin Elliott | November 6, 2009, 1:43PM

Cake image courtesy of Miami Herald; Crist image courtesy of Broward-Palm Beach New Times.

Two Florida newspapers have published pictures of the birthday cake for Charlie Crist sponsored to the tune of $52,000 by Fort Lauderdale super attorney Scott Rothstein.

Remember, Rothstein has been accused of orchestrating a gigantic fraud scheme out of his firm, but Gov. Crist claims that Rothstein is just another supporter, suggesting this week he hardly knows the man.

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Scott Rothstein

Crist Denies Close Ties, But Accused Fraudster Was A Friend Who Even Sponsored Crist's Birthday Cake

Justin Elliott | November 5, 2009, 4:55PM

Gov. Charlie Crist (R-FL) and Scott Rothstein

Florida Gov. Charlie Crist's assertion that accused fraudster attorney Scott Rothstein was nothing more than another campaign supporter is starting to look even thinner.

A Florida source familiar with the situation tells TPMmuckraker that Rothstein often bragged about his closeness to Crist, now a candidate for US Senate. The source says Rothstein once remarked: "It's one thing when you've got the governor on speed dial. It's another thing when the governor has you on speed dial."

"They were friends," the source tells us. "To say anything else is ridiculous."

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Scott Rothstein

Rothstein Roundup: FBI Agents Search Firm, And What Was TD Bank's Role?

Justin Elliott | November 5, 2009, 10:49AM

Scott Rothstein

Dozens of FBI and IRS agents spent the night sifting through files at the firm of south Florida attorney Scott Rothstein, the politically connected ally of Charlie Crist who has been accused by investors of running a massive fraud scheme, local media report.

WPLG 10 has video outside Rothstein, Rosenfeldt and Adler's office building in Fort Lauderdale, where FBI and IRS agents searched the 16th floor through the night. A source told WPLG that 40 agents were involved. Partner Stuart Rosenfeldt said: "We want them to search and look for eveything they need to find evidence of any crimes that may have occurred."

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Charlie Crist

Mo Money Mo Problems: Rothstein Is Latest Crist Fundraiser Under Cloud

Justin Elliott | November 4, 2009, 6:42PM

Gov. Charlie Crist (R-FL), Scott Rothstein, Alan Mendelsohn, and Harry Sargeant

Something is rotten in the state of Florida?

With the accusations this week that Scott Rothstein, fast-living Fort Lauderdale attorney and friend and donor to Gov. Charlie Crist, orchestrated a massive fraud out of his law firm, there are now three Crist moneymen caught up in alleged criminal or extremely shady activity.

Crist, whose career has been fueled by his skill as a fundraiser, finds himself entangled with the trio of scandals just as his U.S. Senate primary campaign against conservative Marco Rubio is attracting national attention. And there's already talk down in Florida that the Crist-linked scandals may become a factor in the primary contest.

So what's it all about? Let's go to the tape.

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Scott Rothstein

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

Justin Elliott | November 4, 2009, 12:43PM

Scott Rothstein

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:

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Scott Rothstein

Roger Stone: I Hired PI To Investigate Biz Partner And Accused Fraudster Scott Rothstein

Justin Elliott | November 3, 2009, 4:41PM

Roger Stone and Scott Rothstein (inset)

Roger Stone told TPMmuckraker in an interview today that he retained a private investigator last year to scrutinize the activities of Scott Rothstein, Stone's onetime business partner who is now being accused of a $100 million fraud involving his south Florida law firm. And, Stone added, he broke with Rothstein earlier this year after Rothstein tried to censor criticism of his friend Gov. Charlie Crist on The Stone Zone, for which Rothstein's law firm was providing web hosting.

Stone, reached in Ohio where he is working election day, explained that about a year ago Rothstein's spending -- "on luxury cars, real estate, watches, charitable and political donations" -- had gotten so out of control that Stone hired private investigator Adam Mangino.

"He came back with two pieces of advice: 'I don't know where the money is coming from, but I do know the money is not his,'" Stone says. "It was at that point that I asked Rothstein to dissolve the company."

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Scott Rothstein

Prominent And Politically Connected Florida Attorney Accused In $100M Fraud Scheme

Justin Elliott | November 3, 2009, 12:29PM

Scott Rothstein

In a case already being compared to the Bernie Madoff affair, a lawsuit filed Monday in Broward County accuses south Florida "super attorney" Scott Rothstein of bilking investors in a scheme run out of the powerful firm Rothstein, Rosenfeldt and Adler, which now says it can't make payroll.

An attorney for one investor told the South Florida Sun Sentinel that the amount of money missing could be over $100 million, though it's not clear where it went.

Rothstein and his wife are jet-setters who live in a 6-plus million dollar Fort Lauderdale home and were known for driving a veritable fleet of expensive sports cars and showering their favorite charities with big donations. A flamboyant character who was once pictured on billboards with Miami Dolphins great Dan Marino, Rothstein grew up in a lower-middle class family in the Bronx. He's now out of town and possibly out of the country -- no one knows where exactly -- and the Feds have reportedly shown up at his law firm offices.

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