US Charges Fla. Lawyer with $1B Investment Fraud

US Charges Fla. Lawyer with $1B Investment Fraud - 12/1/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

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US Charges Fla. Lawyer with $1B Investment Fraud
Staff Writer

Associated Press. December 1, 2009
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EXCERPT: A once high-flying South Florida attorney who courted politicians and celebrities was arrested Tuesday on federal racketeering and fraud charges for allegedly operating a $1 billion investment fraud scheme using faked legal settlements, law enforcement officials said. 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. […] The combined maximum prison term for convictions on all counts is 100 years, according to court documents. Rothstein was scheduled to appear in federal court later Tuesday. A news conference by prosecutors, the FBI and Internal Revenue Service was also planned. The type of charging document filed by prosecutors, known as an "information," is typically used when a defendant has already agreed to plead guilty. Rothstein's attorney Marc Nurick declined comment Tuesday. The document cites unnamed "other conspirators" who also played key roles in the fraud, suggesting that more people could face charges. In addition, the document says that Rothstein paid "gratuities" to unidentified police officials "to deflect law enforcement scrutiny" of his activities. The criminal case was seen as inevitable after Rothstein returned from Morocco early last month amid mounting questions from investors and the FBI about missing money. The FBI has estimated the Ponzi scheme could top $1 billion and asked investors to come forward with information. Federal agents have seized Rothstein's boats, including an 87-foot yacht, as well as 20 luxury cars and numerous other assets, including his share of the Miami Beach mansion formerly owned by fashion designer Gianni Versace. Prosecutors are also going after 21 homes and other properties linked to Rothstein in Florida, New York and along Rhode Island's Narragansett Bay.

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