Florida Ponzi Con Man Scott Rothstein Gets 50 Years
Florida attorney and mastermind of a $1.2 billion Ponzi scheme, Scott Rothstein, was sentenced to 50 years yesterday in the U.S. District Court for the Southern District of Florida. The scam involved investments in non-existent settlements, and resulted in the loss of about $400 million to 400 victims. Rothstein wrote a letter to the court stating that he had entered into the scheme in order to help his law firm, Rothstein, Rosenfeldt & Adler, meet its costs of expansion. Rothstein used the income and his client's funds to live a lavish lifestyle, and to associate with the powerful and famous, including Florida Governor Charlie Crist and California Governor Arnold Schwartzenegger. When the scheme unraveled last October, Rothstein fled to Morocco, but returned after "praying" for several days.
The government had sought a sentence of 40 years, and Rothstein's counsel had argued for a reduced sentence based upon Rothstein's cooperation with authorities following his arrest, however the court imposed a longer sentence, citing Rothstein's "greed and arrogance." Rothstein reportedly has assisted authorities in helping to set up a reputed organized crime figure.
Only one of the many victims, a client whom Rothstein had represented in a municipal proceeding, spoke at the sentencing. Another victim, auto magnate Ed Morse, has claimed $57 million alone in losses from Rothstein's conduct.
The chief operating officer of Rothstein's firm, Debra Villegas, is expected to plead guilty on Friday to charges of conspiring with Rothstein in the scheme. Villegas is the only other individual from Rothstein Rosenfeldt & Adler to face criminal charges. A bankruptcy proceeding continues to attempt to recover assets, and investors have sued numerous defendants, including Toronto Dominion (TD) Bank, which Rothstein moved his monies through.
