Ft Lauderdale attorney charged by FBI in Ponzi scheme. Over $1 billion!

[sixmile]

http://finance.yahoo.com/news/Fla-lawyer-charged-with-1B-apf-2522460983.html?x=0&sec=topStories&pos=3&asset=&ccode=
A once high-flying attorney who courted politicians and celebrities was arrested Tuesday on federal racketeering and fraud charges alleging he operated a $1 billion investment scheme involving phony legal settlements.

Lawyer Scott Rothstein was led into the Miami FBI office in handcuffs following his early morning arrest on five charges, including a violation of the Racketeer Influenced and Corrupt Organizations, or RICO law, often used against the Mafia and other criminal organizations.

Rothstein was also charged with wire fraud, money laundering, and mail and wire fraud conspiracy. The combined maximum prison term for convictions on all counts is 100 years, according to court documents.

"This case is a glaring example of greed run amok," acting Miami U.S. Attorney Jeffrey Sloman said. "He sought to buy power and influence at the expense of his clients, and instead has potentially bought himself a lengthy prison sentence."

A few hours after his arrest, Rothstein pleaded not guilty in federal court even though the information charging document -- rather than an indictment -- used by prosecutors typically means a defendant has agreed to eventually plead guilty.

"There is no deal at this point in time," said Rothstein attorney Marc Nurik.

Nurik added that Rothstein -- shackled and wearing a black T-shirt and blue jeans in court -- intends to repay as many investors as possible. "At the end of the day, the people who deserve to get money back hopefully will," Nurik said.

Rothstein was ordered held without bail by U.S. Magistrate Robin Rosenbaum, who noted that Rothstein had wired some $16 million to a bank account in Morocco and flew on a chartered jet there in late October before returning to Florida. Rothstein carried up to $500,000 in cash on that trip, she said citing evidence from prosecutors.

"At least at some point, Mr. Rothstein intended to flee," Rosenbaum said.

more at link

Here's the blog that smoked this guy out a long time ago:

http://blogs.browardpalmbeach.com/pulp/

Worth a read.

http://www.sun-sentinel.com/news/broward/fl-rothstein-charges-20091201,0,2217974.story
Once prominent, flashy attorney Scott Rothstein was arrested Tuesday on federal charges accusing him of racketeering and conspiracy to commit fraud in a $1.2 billion Ponzi scheme he allegedly ran from his law firm in downtown Fort Lauderdale.

Rothstein and unnamed co-conspirators used some of that money to make illegal political contributions as well as give "gratuities to high-ranking members of police agencies in order to curry favor with such police personnel and to deflect law enforcement scrutiny of the activities of (his law firm) and Rothstein," according to federal court documents.

Rothstein and his cohorts also used Ponzi scheme funds to buy restaurants where they could give gratuities to "individuals including politicians, business associates and attorneys in order to foster good will and loyalty, as a location to solicit potential investors and as a secure location for conspiratorial meetings," court records show.

In addition, Rothstein and the unidentified co-conspirators instructed employees of the Rothstein Rosenfeldt Adler law firm to make political contributions, then would give them large bonuses as a way of hiding the true source of the contributed funds, the federal court documents allege.

A handcuffed Rothstein, 47, was escorted by federal agents into the FBI office in North Miami Beach shortly before 8 a.m. He was picked up by agents at an undisclosed Broward hotel.

snip

He bought more than $34 million worth of property – four waterfront homes on one block of Las Olas Isles; a Harbor Beach lot and estate, where he entertained presidential candidate John McCain, Gov. Charlie Crist and California Gov. Arnold Schwarzenegger, and hosted society galas; a $6 million luxury condo in midtown Manhattan; and side-by-side waterfront homes on Narragansett Bay, R.I.

snip

[imdjh]

1. Gotta love the fashion sense, from the shoes to the arm blonde. Pure trash.

[CurtEastPoint]

2. Their motto (not kidding): Passion Integrity Commitment

Should be more like Passion Implausible Greed, or PIG.

According to the Sun-Sentinel, property records show that in 2008 alone, Rothstein bought a $6.45 million Fort Lauderdale home, a $6 million condo in New York and a $2.8 million oceanfront estate in Narragansett, R.I. He also has amassed an impressive collection of exotic cars worth millions: Ferraris, Bentleys, Rolls-Royces and a pair of 2010 Lamborghini Murcielagos — each worth about $400,000, records show.

Oh, by the way...their website is down. Wonder why? http://www.rra-law.com/

[Vinnie From Indy]

3. There needs to be a web site that chronicles and inventories these GOP criminals

Just last week in Indy a prominent attorney has his offices raided by the FBI. It looks like he too conned hundreds if not thousands of investors out of a billion or so dollars. He too spent a ton of money on GOP candidates in the state and to national candidates over the last decade.