Florida Ponzi Schemer Rats Out Friends
In a last-ditch effort to acoid death behind bars, convicted ponzi schemer Scott Rothstein is ratting out his friends and colleagues. Mr. Rothstein was convicted of a $1.2 billion fraud and has pledged to the the complete truth about who else was involved.
Thirty-plus lawyers representing dozens of victims are lined up to interrogate Rothstein about the ponzi scheme he ran in his now-bankrupt Fort Lauderdale law firm. The real questions concern how much assistance he got from outsiders, specifically bankers and other attorneys.
The ponzi scheme which collapsed like a house of cards in the fall of 2009 is being exposed in more detail according to William Scherer, who represents about 25 investors. Mr. Scherer said, “The illegalities that went on there are bigger that what I knew. It's pretty amazing to me.”
Apparently, three other South Florida law firms may be involved in referring the faked legal settlements to Mr. Rothstein. If true, that could make them part of the ponzi scheme with the possibilities of further criminal action by the government and potential lawsuits by investors.
Rothstein currently faces a 50-year prison sentence and hopes to one day get out. Federal prosecutors have recommended a reduction in his prison sentence, but only if he continues to assist in the ongoing criminal and civil cases.
Mr. Rothstein is 49 years-old and now part of the federal witness protection program because of his assistance in the conviction of a South Florida man with alleged organized crime ties. U.S. attorney Wifredo Ferrer says that more charges are pending in one of the biggest fraud cases in South Florida history.