Disbarred lawyer Scott Rothstein Pleads guilty to 1.2 Billion Ponzi Scheme in South Florida
Disbarred lawyer, Scott Rothstein admitted to masterminding a Ponzi scheme that defrauded investors of $1.2 billion. In a Ft. Lauderdale courtroom, Rothstein pleaded guilty to five federal charges, including wire fraud, money laundering, and racketeering. This scheme is the largest financial fraud case in South Florida history.
According to federal officials, the highly successful Ponzi scheme lasted roughly four years. In the process, Rothstein swindled $1.2 billion from countless investors ranging from retirees to athletes. The 47-year-old disbarred lawyer faces a sentence of up to 100 years in federal prison at his sentencing in May.
Along with his scheme came donations to state and national political parties and politicians in excess of hundreds of thousands of dollars. These contributions include $200,000 to the Florida Democratic Party, $150,000 to the Florida Republican Party, and approximately $9,600 to the U.S. Senate campaign of Florida Governor Charlie Crist. All such donations have reportedly been returned.
Federal officials indicate that Rothstein used proceeds from the scheme to buy numerous homes, cars, and other expensive items. Rothstein reportedly owned over 24 homes and other properties, nearly two (2) dozen exotic cars – including a Maserati and a Ferrari – expensive jewelry, an 87-foot yacht, and more. Thus far, authorities have reportedly seized roughly $60 million in assets from Rothstein and his estate.
See the following links below on how Investors can learn more about protecting themselves and investments from fraud.
U.S. Securities and Exchange Commission’s Investor Information Page:
Financial Industry Regulatory Authority’s Investors Page:
To read more on the Rothstein guilty plea, click on the following links:
Bloomberg News
Business Week
SouthFlorida Business Journal
