Federal Criminal Defense Blog : Georgia Federal Criminal Defense Lawyer & Attorney : Gillen Withers & Lake Law Firm : White Collar Crime, RICO, Trial : Atlanta, Savannah, GA

The recap of the trial thus far of former Illinois Governor Rod Blagojevich, from the coverage of the Chicago Tribune's "Blagojevich on Trial" Blog and the Springfield State Journal-Register's Blagojevich trial coverage continues.

Thursday, June 17, 2010: Former Democratic Party fundraiser Joseph Cari testifies that Blagojevich spoke with him about presidential ambitions and getting contributions from businesses in exchange for awarding state business. Cari states that Antoin “Tony” Rezko told him he made decisions as to who got state work. Cari also testifies that he pressured venture capital firm JER, which was seeking to gain an $80 million allocation from Illinois’ teacher’s pension panel, to hire a consultant designated by Rezko, who would be paid a large finder’s fee. The defense gets Cari to admit that Stuart Levine—not Blagojevich—told Cari that JER would not receive the pension investment business unless it hired the consultant. Cari does admit that JER received the allocation even though it did not ultimately hire the consultant. Blagojevich’s attorneys point out that Cari did not tell federal investigators about his alleged conversations with Blagojevich until 82 days after they first contacted him, and attempts to portray Cari as lying to prosecutors in order to obtain a plea deal. Former Illinois Director of Boards and Commissions Jill Hayden testifies that she gave the most weight to recommendations by Rezko and Chris Kelly in selecting candidates to fill State boards. Rezko and Kelly selected five of the nine member Illinois Finance Authority (IFA). Hayden testifies that Rezko also called her and told her Levine needed to be reappointed to the Illinois Teacher’s Retirement System Board. Blagojevich aid Alonzo “Lon” Monk subsequently contacted Hayden and told her not to take any more calls from Rezko because the FBI had tapped his phones. Ali Ata, former head of the IFA, testifies that, in August 2002, he met with Blagojevich, Rezko, Kelly and legislator Jay Hoffman and gave Blagojevich $25,000 in return for a position in the administration. He states that gave Blagojevich another $25,000 in 2003 at Rezko’s request, and that Blagojevich had thanked Ata and said that he knew he was considering a job with the administration and that it had better be a job where Ata could “make some money.” Ata testifies that Rezko also came to him while he was Chief of the IFA seeking $16 million to refinance his restaurant businesses, stating that he would get the Governor to approve it. Ata states that he did not support the plan. Ata testifies that Rezko promised him a job on the Capital Development Board, but that the position was given to someone else. He also states that Rezko became increasingly paranoid about being bugged by federal investigators. On cross-examination, the defense attempts to have Ata admit that Blagojevich himself never informed Ata that he was receiving a State post in exchange for his campaign contributions.

Monday, June 21, 2010: John Johnston, owner of the Maywood and Balmoral race tracks, testifies that Lon Monk came to see in December of 2008 and asked him for a contribution right before the Governor signed legislation extending subsidies for race tracks. E-mails are introduced indicating that former U.S. Representative and White House Chief of Staff Rahm Emanuel supported Blagojevich in 2006 in exchange for the State authorizing a $2 million grant for construction of athletic fields for the Academy for Urban School Leadership, a school in Emanuel’s district. Former Deputy Governor Bradley Tusk testifies that Emanuel contacted him when the grant money for the school was held up, and that Blagojevich’s advisors said that the Governor wanted Emanuel’s brother, a wealthy Hollywood agent, to hold a fundraiser for the Governor. Tusk requested that Emanuel write a letter to the Chicago Tribune in support of the Governor’s programs. He also testifies that he met frequently with Rezko and Kelly during his tenure as Deputy Governor, and that he signed checks for Blagojevich when the Governor was not present. John Harris, Blagojevich’s Chief of Staff, testifies that Blagojevich had stated to him that he wanted to run for President. Harris testifies that Blagojevich directed him to block two investment firms from getting any State business on the grounds that the firms had failed to hire the Governor’s wife, Patti Blagojevich. Harris also testifies that Blagojevich was interested in finding a State position for his wife, including on the Illinois Pollution Control Board.

Tuesday, June 22, 2010: Harris testifies that Blagojevich became increasingly worried about his finances, including his legal bills of approximately $1.7 million from the law firm of Winston & Strawn. Blagojevich paid his legal expenses from his campaign funds. Harris testifies that Blagojevich considered appointing Illinois Senate President Emil Jones, and even himself, to the U.S. Senate seat vacated by President Barack Obama. However, when Jones caused an ethics bill which Blagojevich opposed to pass the Senate, Blagojevich allegedly told Harris that there was no way Jones would get the seat. Harris testified that he had conversations with Blagojevich regarding “how much” he could get for the Senate seat, including from wealthy businessmen Blair Hull and J.B. Pritzker. Harris testified that he and General Counsel Bill Quinlan told Blagojevich not to consider such ideas. Harris testified that Rahm Emanuel telephoned him and told him that President Obama was interested in having Valerie Jarrett, former Chairman of the Chicago Transit Authority, appointed to fill the seat. The prosecution plays an audio recording of a conversation between Blagojevich and Harris regarding Emanuel’s suggestion of Jarrett. Blagojevich asks Harris on tape what he can get for appointing Jarrett, including a potential appointment as Secretary of the U.S. Department of Health and Human Services.
 

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 Since the prosecution of former Illinois Governor Milorad R. “Rod” Blagojevich has rested its case, we take the opportunity to recap the testimony and evidence in the first 23 days of the trial, drawing upon the excellent coverage of the Chicago Tribune’s “Blagojevich on Trial” Blog, and also WGN-TV Team 9's Trial Coverage. For the serious follower of the trial, the U.S. District Court for the Northern District of Georgia has also made available virtually all the pleadings, exhibits and recordings from the trial to the public, which may be perused here.

 Thursday, June 3, 2010: The trial of Blagojevich and his brother and co-defendant, Robert Blagojevich, begins in the U.S. District Court for the Northern District of Illinois in Chicago, U.S. District Judge James Zagel presiding. Blagojevich’s attorney, Sheldon Sorosky confirms that the defense has subpoenaed numerous individuals, including U.S. Senator and Senate Majority Leader Harry Reid, U.S. Senator Dick Durbin, U.S. Representative Jesse Jackson, Jr., White House Chief of Staff Rahm Emanuel and Presidential advisor Valerie Jarrett. Judge Zagel denies petitions from the media to disclose the identities of jurors. Jury selection begins.

Friday, June 4, 2010: Jury selection continues. Blagojevich speaks to media and states that he has been falsely accused, and will be vindicated.

Monday, June 7, 2010: Jury selection continues.

Tuesday, June 8, 2010: A jury of 11 women and seven men—12 jurors and six alternates—is selected. The defense files motion alleging that Blagojevich’s First Amendment right to free speech was “criminalized.” Judge Zagel rules that no “twittering” is allowed in the courtroom. Assistant U.S. Attorney Carrie Hamilton give opening statement for prosecution. Hamilton argues that Blagojevich had more than $200,000 in debt and viewed the election of former U.S. Senator for Illinois Barack Obama as President of the United States as a financial opportunity. The prosecution alleges that Blagojevich sought to be appointed Secretary of the U.S. Department of Health and Human Services (HHS) and for millions of dollars in donations to a charitable organization which Blagojevich would control in exchange for appointing Valerie Jarrett to Obama’s vacant Senate seat. Hamilton argues that Blagojevich later sought $1 million from Jesse Jackson, Jr., in exchange for the appointment. Blagojevich viewed the vacancy as a “golden ticket.” The prosecution also argues that Blagojevich, convicted real estate developer Antoin “Tony” Rezko, Christopher Kelly and Blagojevich’s former Chief of Staff, Alonzo “Lon” Monk, conspired to extort kickbacks from companies seeking business from the state. Rezko allegedly made payments of $12,000 per month to Blagojevich’s wife, Patti Blagojevich. Blagojevich is also alleged to have extorted tens of thousands of dollars from Children’s Memorial Hospital in Chicago in exchange for obtaining reimbursements for the hospital, and to have attempted to extract campaign contributions from then-U.S. Representative Rahm Emanuel in exchange for a $2 million grant to a school in Emanuel’s district. Blagojevich attorney, Sam Adam, Jr., argues that Blagojevich didn’t receive a dime from the alleged scheme. Adam argues that Blagojevich was naïve in trusting others, including Rezko.

Wednesday, June 9, 2010: FBI agent Daniel Cain testifies regarding the investigations of Rezko and Blagojevich. Lon Monk, Blagojevich’s former campaign manager, who pled guilty to conspiring to solicit a bribe and is cooperating with the government, testifies to Blagojevich’s fundraising in the 2002 campaign. Monk testifies that Blagojevich, Rezko, Chris Kelly and Monk had a meeting in 2003 to discuss how to profit from action by the state. Rezko listed nine money-making ideas and the participants agreed to divide the profits equally. Kelly, who owned a roofing company, committed suicide in 2009, and the Court prohibited any mention of him to the jury. Monk testifies that he and Rezko also gave their opinions on who should receive senior positions in Blagojevich’s administration. He testifies that Blagojevich and Rezko obtained a $500,000 kickback from lobbyist Robert Kjellander in exchange for selecting Bear Stearns to sell a $10 billion pension bond deal in 2003. Monk testifies that Rezko tried to start an insurance company using his connections, the profits from which would be divided with Blagojevich and Monk.

Thursday, June 10, 2010: Lon Monk testifies regarding Blagojevich’s appointments of donors donating $25,000 or more to State boards and commissions. He states that Rezko allegedly “hired” Patti Blagojevich and paid her a $150,000 retainer, despite the fact that Ms. Blagojevich performed no work. Monk testifies that Blagojevich entered an agreement with Illinois State Senator and Senate President Emil Jones to not override Blagojevich’s veto of a bill which would have limited fundraising in campaigns for governor. The prosecution plays a recording of a telephone conversation between Blagojevich and Monk about getting $4 million in campaign fundraising, with Blagojevich yelling at Monk to contact prior donors to send $5,000 or whatever they can send. Prosecutors play recordings of telephone conversations, including a conversation in which Blagojevich and Monk discuss Jesse Jackson, Jr. Monk testifies that Blagojevich instructed him to attempt to obtain a $500,000 donation from Jerry Krozel, head of a road construction association, in exchange for announcing $5 billion in toll road funding, before a new ethics law banning such large donations took effect.

Photo from Cleveland.com

Monday, June 14, 2010: Monk testifies that he felt pressure to bring in campaign funds. He testifies that Blagojevich met with him in 2008 and said that he wanted to meet with race track owner John Johnston and obtain a $100,000 donation, allegedly in exchange for signing legislation which would save money for Illinois race tracks. The defense cross-examines Monk. Michael Ettinger, attorney for Robert Blagojevich, gets Monk to admit that Rod kept his brother out of the political end of things, including the meeting concerning Johnston. Sam Adam asked Monk whether it was a crime for a politician to accept a campaign contribution for state action if there was no quid pro quo, or something offered in exchange. Monk subsequently responded that it was not. Adam questioned Monk regarding whether Blagojevich had ever indicated that he would not sign the race track legislation if Johnston did not make a campaign contribution.

Tuesday, June 15, 2010: Blagojevich’s counsel continue their cross-examination of Monk. Monk admits that he occasionally lied to Blagojevich in order to stop Blagojevich from bothering him about fundraising. Monk repeatedly admits that he does not remember specifics of meetings with Blagojevich, Rezko and Kelly. The defense points out that Monk accepted several $10,000 cash gifts from Rezko allegedly in exchange for his involvement in the scheme, however Monk had signed a statement for the prosecution stating that the amounts were gifts with no quid pro quo attached. Monk admits that he lied to the FBI in an earlier interview. The defense tries to suggest that Blagojevich knew nothing about the cash or illegal acts involving Monk and Rezko. Monk admits that Blagojevich never told him he would withhold the funding for the toll roads if he did not receive a contribution. David Abel, a public finance quantitative technician, testifies regarding a meeting with Blagojevich, Kelly and staffers regarding the $10 billion pension bond issue. Abel admits on cross-examination that Bear Stearns was rated as highly qualified to do the deal. Vincent Mazzaro, a member of Bear Stearns’ municipal bond department, testifies that the manager of the department would have hired Robert Kjellander, who allegedly paid a $500,000 kickback to Rezko to ensure that Bear Stearns was selected as elite manager for the sale of the bonds. Kjellander would receive a “success fee,” in this case $809,000. Joseph Aramanda, a friend of Rezko’s, testifies that Kjellander loaned him hundreds of thousands of dollars at Rezko’s direction to support Papa John’s pizza franchises which Aramanda had purchased from Rezko. Aramanda testifies that Kjellander did not ask for any documentation for the loan. He testifies that Rezko contacted him following his receipt of the loan proceeds and asked him to pay various individuals and entities whom Rezko owed money to. Aramanda also testifies that Rezko told him he was involved in appointments for cabinet positions in Blagojevich’s administration, and offered Aramanda a position in the Illinois Department of Aging. Rezko also approached Aramanda about being a middleman between the Illinois Teachers Retirement System (TRS) and investment firms seeking to invest TRS monies. Aramanda testified that Rezko introduced him to Sheldon Perkin, another middle man, and that he and Perkin received $375,000 each from a $50 million investment deal between TRS and Glencoe Capital.

Wednesday, June 16, 2010: Joseph Aramanda testifies that Sheldon Perkin paid him $375,000, in three installments, on the TRS/Glencoe Capital, deal despite the fact that he did no work on the deal. Rezko asked Aramanda to divert $50,000 from the first installment to the sister of one of Rezko’s business associates. Aramanda testifies that Rezko told him that he could earn at least $1 million a year in finder’s fees for securing state pension monies for investment firms. Rezko told Aramanda that he would take a cut of the fees paid to Aramanda and would share them with Blagojevich, Lon Monk and Chris Kelly. Armanda stated that when Rezko told him about the arrangement, he became uncomfortable and withdrew from the agreement. Blagojevich attorney Michael Gillespie questions Aramanda about making a $10,000 contribution in 2004 to Barack Obama’s campaign for the U.S. Senate. The prosecution plays audio recordings of telephone conversations in which Blagojevich discusses the interest Illinois businessman Blair Hull, who donated $467,000 to Blagojevich’s 2002 campaign, in the vacant U.S. Senate seat. Blagojevich calls Hull “an idiot.” IRS agent Shari Schindler testifies that, in investigating Rezko, the government found monies going to Chris Kelly and River Realty, a company affiliated with Patti Blagojevich. Joseph Cari, a former national Democratic fundraiser, testifies that he had a conversation with Blagojevich in 2003 regarding Blagojevich running for president, in which Blagojevich told him he would approach businesses for contributions in exchange for awarding state business. The prosecution requests a gag order for Blagojevich and his counsel to prevent them from making public comments and influencing the jury. Judge Zagel states that he will take up the request later.

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Of course we knew it was coming, but disbarred Fort Lauderdale attorney Scott Rothstein, architect of a $1.2 billion Ponzi scheme selling phony interests in settlements in employment and civil cases, pled guilty today in the U.S. District Court for the Southern District of Florida to charges of racketeering, fraud and money laundering,

and various other sources. Rothstein was also charged with taking monies from client trust accounts and making unlawful campaign contributions to politicians. Former attorneys and employees of Rothstein's former law firm, Rothstein Rosenfeldt Adler, are currently being investigated for illegal campaign contributions.

Following his surrender to authorities last fall, Rothstein assisted authorities in locating assets. His sentencing hearing has been set for May 6.

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The fallout from Fort Lauderdale attorney Scott Rothstein's alleged fraudulent scheme to bilk investors out of hundreds of millions continues to fall.

Florida Governor Charlie Crist has told the media that he will return campaign contributions received from Rothstein and employees of his law firm, a total of $76,250. The announcement by Crist follows a pledge by Florida Republican Senate President Jeff Atwater to return donations by Rothstein. On the same day, Florida Chief Financial Officer Alex Sink, a Democrat, announced that she would return at least $7,025 in contributions from Rothstein and members of his firm. Crist is running for U.S. Senate, Sink is running for Governor and Atwater is running for Chief Financial Officer. Rothstein is alleged to have made contributions to numerous politicians using ill-gotten gains, and to have illegally reimbursed members of his firm for making contributions. Rothstein and his wife, Kimberly, also held fundraisers for Senator McCain and Governor Crist in one of their waterfront homes.

The campaign contributions have also created potential criminal exposure for lawyers at Rothstein's firm Rothstein Rosenfeldt Adler. Approximately 30 lawyers in the firm, along with 15 employees, spouses and relatives, made approximately $2.2 million in Federal and State campaign contributions, with the largest recipient being the 2008 Presidential campaign of Arizona Senator John McCain. One attorney, Steven Lippman, and his wife contributed approximately $247,000 to Governor Crist,  Senator McCain and other politicians over a span of four years. Federal investigators are looking into the contributions. Several partners in the firm have retained counsel in response to the investigation. Experts have stated that the attorneys should have been aware that they were violating campaign finance laws when Rothstein required the attorneys to make campaign donations as a condition to receiving bonuses.

The fallout has extended further to Fort Lauderdale Police Chief Frank Adderly. Two Fort Lauderdale City Commissioners have asked the Florida Department of Law Enforcement to investigate Adderly regarding his relationship with Rothstein. Rothstein is alleged to have flown Adderly to New York in December 2008 for a football game, and Adderly personally intervened in an automobile collision involving a friend of Rothstein.

Fisher Auction will auction property of Rothstein's law firm on January 23, at the direction of the firm's trustee, including fountain pens used by Rothstein and the massage chair in the firm's lounge. Rothstein's attorney has opposed the auctioning of photographs of Rothstein withvarious politicians.

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In response to allegations uncomfortably similar to those against former New York celebrity lawyer and arch Ponzi-schemer Marc Dreier, Fort Lauderdale attorney Scott Rothstein, head of Rothstein, Rosenfeldt and Adler, P.A., appeared in response to a criminal information in the U.S. District Court for the Southern District of Florida on Tuesday. The information charges Rothstein with one count of Racketeering Conspiracy, in violation of 18 U.S.C. § 1962(d); one count of Money Laundering Conspiracy, in violation of 18 U.S.C. § 1956(h); one count of Mail and Wire Fraud Conspiracy, in violation of 18 U.S.C. § 1349; and two counts of Wire Fraud, in violation of 18 U.S.C. § 1343, as well as criminal forfeiture, U.S. v. Rothstein, 0:09-cr-60331-JIC.

According to the criminal information, available here, from about 2005 through November 2009, Rothstein, and other “known and unknown” unnamed co-conspirators, allegedly unlawfully obtained approximately $1.2 billion from investors through a Ponzi scheme (outdoing even Dreier’s scheme). The Government alleges that Rothstein used false statements, documents and computer records to induce investors to loan money to alleged borrowers based upon fraudulent and fictitious promissory notes and bridge loans. Rothstein allegedly falsely informed investors that his law firm, Rothstein, Rosenfeldt and Adler, P.A.’s, clients requested short-term financing for undisclosed business deals and that the clients were willing to pay high rates of return for loans negotiated by Rothstein.

Rothstein also allegedly told investors that they could purchase at a discount confidential settlement agreements in sexual harassment and whistleblower cases in amounts ranging from hundreds of thousands of dollars to millions of dollars. Rothstein allegedly falsely represented that the settlement agreements would be repaid to the investors at face value over time. Rothstein allegedly represented to investors that the settlements were highly confidential in order to protect the reputations of the companies and executives involved; that the plaintiffs preferred to settle the claims rather than purse them in a public forum; that Rothstein, Rosenfeldt and Adler, P.A., would disburse the investors’ funds to the plaintiffs; that the firm would make payments to the investors pursuant to the payment schedules in the alleged settlement agreements; that the funds were maintained in designated trust accounts for the investors in accordance with the rules and regulations of the Florida Bar and were verified by independent sources, as well as numerous other alleged false statements regarding the settlement agreements, investment funds and the firm.

To effect the fraud, Rothstein allegedly established numerous trust accounts in Rothstein, Rosenfeldt and Adler, P.A.’s name; falsified statements from financial institutions and manufactured online banking information allegedly showing investors’ monies; created false and fictitious settlement agreements and other documents. Among the alleged false and fictitious documents was a court order in a case, purportedly signed by a Federal District Judge, which falsely alleged that Rothstein, Rosenfeldt and Adler, P.A.’s clients had prevailed in a lawsuit and were owed $23 million, when in fact the firm had settled the case without the clients’ knowledge and had obligated them to pay $500,000 to the defendant.

The information also alleges that Rothstein allegedly falsely told clients that, in order to recover funds, they had to post bonds to be held in Rothstein, Rosenfeldt and Adler, P.A.’s trust account. Over several years, clients wired approximately $57 million to a trust account controlled by Rothstein. Rothstein allegedly created another false Federal court order to conceal the scheme, providing that the funds were to be returned to the clients by a later date.

Rothstein used the funds acquired through the alleged scheme to fund the operations of Rothstein, Rosenfeldt and Adler, P.A., and to expand the firm. The firm grew to employ approximately 70 attorneys. Rothstein is alleged to have laundered the funds from the scheme through corporations, contributions and large bonuses and gifts to employees. The information alleges that Rothstein used the funds to make contributions to Federal, State and local political candidates in a manner designed to conceal the source of the funds and to circumvent Federal and State limits on campaign contributions; for charitable donations; to purchase controlling interests in restaurants in South Florida; and to hire members of local law enforcement to provide security for Rothstein, Rosenfeldt and Adler, P.A., and for Rothstein personally.

The enormous wealth amassed by Rothstein through the alleged scheme is apparent in the Governement’s forfeiture allegations, which seek forfeiture not only of a sum of $1.2 billion, but also of 24 properties in Fort Lauderdale, Lauderdale by the Sea, Boca Raton, Hollywood and Plantation, Florida; New York City and Narragansett, Rhode Island, including Rothstein’s 10% ownership in the Miami Beach mansion of late fashion mogul Gianni Versace, “Casa Casuarina.” Forfeiture is also sought of numerous business interests, bank accounts and jewelry, as well as 24 vessels and vehicles purchased by Rothstein, including a 55 foot yacht.

The Government also lists millions in political and charitable contributions by Rothstein which it seeks forfeiture of, including contributions to the Republican Party of Florida; Florida Governor Charlie Crist; Democratic Chief Financial Officer Alex Sink, who is running for governor; and two hospitals.

As reported in the Miami Herald here, and here, Rothstein started Rothstein, Rosenfeldt and Adler, P.A., in 2002 as an obscure attorney practicing employment law. Over the next six years, his net worth grew from about $160,000 to tens of millions. Rothstein used flashy wealth and connections in the Broward County social and business communities to lure wealthy persons to invest in his schemes. He befriended the rich and famous, including NFL Hall of Famer Dan Marino

George G. Levin, a wealthy Fort Lauderdale resident and hedge fund manager, gave $656 million to Rothstein to invest in settlements purportedly worth $1.1 billion. Levin helped Rothstein market investments in employment and sexual harassment lawsuits to investors, although he is not alleged to have been complicit in Rothstein’s crimes. Another of Rothstein’s clients, car-dealership mogul Ed Morse, claims that Rothstein defrauded him of $57 million, arising from the settlement of a contract dispute with an interior decorator.

Rothstein would allegedly give large bonuses to employees of Rothstein, Rosenfeldt and Adler, P.A. on the condition that they make campaign contributions to political candidates who Rothstein would specify. The Government has stated that the recipients of the political contributions have returned the contributions. The Florida Democratic Party has returned $200,000 and the Florida Republican Party has given back $150,000. After Crist won the Governor’s race in 2006, he appointed Rothstein to a panel which nominates Broward County judicial candidates. The Florida Democratic Party has called for an investigation of Crist. Rothstein also allegedly paid gratuities to local law enforcement officers to avoid scrutiny.

Rothstein’s scheme began to unravel over Halloween weekend, when investors began calling the firm for overdue payments and discovered the fraud. Rothstein fled to Morocco in October, taking $400,000 to $500,000 in cash with him and wiring $16 million to Casablanca. Rothstein reportedly sent e-mails to members of his firm that he was contemplating suicide, but he returned to the U.S. on a private jet in early November. He met with Federal authorities and provided details regarding his Ponzi scheme. FBI and IRS agents raided Rothstein, Rosenfeldt and Adler, P.A.’s law offices, and seized Rothstein’s real and personal property. Rothstein agreed to waive indictment, an indication that he is cooperating with the Government, although Rothstein’s counsel has denied that he has any deal with the Government.

The Government’s information does not name Rothstein’s alleged co-conspirators, however news reports suggest members of Rothstein's inner circle at the law firm, and officers at Toronto Dominion Bank, where the investor trust accounts were held.

Rothstein’s alleged Ponzi scheme has been called the largest in the history of South Florida by Federal officials. The Florida Bar has disbarred Rothstein for stealing from the firm’s trust account. Rothstein, Levin and TD Bank are also being sued by a group of investors for more than $100 million.

Rothstein appeared in court on Tuesday in casual attire with a confident demeanor and pled not guilty to the information. U.S. Magistrate Judge Robin Rosenbaum ordered Rothstein jailed pending trial based on Rothstein’s flight to Morocco. Rothstein is represented by attorney Marc Nurik, oddly of Rothstein, Rosenfeldt and Adler, P.A. He faces up to 100 imprisonment if convicted.

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