Miami's Madoff Racked Up $1 Billion In Damages

November 13. 2009

The Miami FBI held a press conference to discuss the ponzi scheme, run by lawyer, Scott Rothstein. It was revealed the damages in the Rothstein case are not $500,000,000 as stated previously in the press, but $1 billion dollars.

Once again, the government's regulatory system has failed the nation and investors worldwide, as it did in other cases such as Bernard Madoff, R. Allen Stanford and Enron. Financial entities should be required to provide accurate proof of their accounting methods and funds currently in their possession.

Previously, Rothstein fled to Morocco and sent a troubling email to his friends and family, regarding the ponzi scheme he actively ran from his South Florida office, ensconced in his law firm Rothstein, Rosenfeldt and Adler.

The email revealed a distressed Rothstein, confessing to his misconduct and hoping God will forgive him for it. While, it is good he didn't kill himself and God can forgive him, Rothstein will face the judicial consequences of his misconduct in federal court.

FBI: Don't Believe $1B Fraud 'first in South Fla.'

The FBI says an alleged fraud involving prominent Fort Lauderdale lawyer Scott Rothstein could exceed $1 billion. Rothstein has not been charged but officials say the investigation is complex. (Nov. 12)

http://www.citrusdaily.com

Feds seize embattled lawyer Scott Rothstein's property

Federal prosecutors accused a high-profile South Florida attorney of concocting a Ponzi scheme that lured millions of dollars from investors with promises of big payoffs from legal settlements that never existed, according to court documents filed Monday.

The civil complaint, seeking forfeiture of eight pieces of property owned by lawyer Scott Rothstein, marks the first time prosecutors have leveled fraud allegations at him- even though criminal charges have yet to be announced. It was filed the same day FBI and Internal Revenue Service agents seized luxury cars, boats, bank accounts and other possessions of the once high-flying Rothstein. The forfeiture complaint put the value of the real estate at more than $18 million.

In the complaint, prosecutors claim that Rothstein operated the Ponzi scheme since 2005 using his law firm, Rothstein Rosenfeldt Adler. Investors were promised fat profits of 20 percent or more by paying lump sums to people who had won legal settlements that would supposedly pay out larger

http://www.miamiherald.com

Florida Car Mogul Is Duped Out of $57 Million

In the post-Madoff world, Ponzi schemes seem to be popping up everywhere. The latest is the alleged scam run by Ft. Lauderdale, Fla., lawyer Scott Rothstein.

He is the Ferrari-loving, bling-wearing, Versace mansion co-owner who worked in a sealed “Bat Cave” and who is suspected of stealing hundreds of millions of dollars from investors who bought legal settlements from him since 2005.

No one has been charged. But the FBI towed away his Ferrari spider convertible this week and seized his mansion and yachts, along with 44 boxes of documents. They are now seeking information from former Rothstein investors. Meantime, the Jerald reports, Rothstein is staying at an undisclosed location under federal surveillance.

The latest intelligence on the scam involves $57 million Mr. Rothstein is accused of taking from a Southeast auto magnate. The case seems like a “Richistan” version of the classic Nigerian email scam.

According to the Miami Herald, auto dealer Ed Morse was fighting with his interior decorate over a $2 million bill. He hired Mr. Rothstein to fight it. Mr. Rothstein told the Morses he won the case and was entitled to a $23 million judgment.

Mr. Rothstein said all they had to do to get the $23 million money–alleged to be in a Cayman Islands account that a judge had authorized the family to seize–was to post a bond 2 1/2 times larger than the judgment, or $57 million, which could be wired to Mr. Rothstein...

http://blogs.wsj.com