Fort Lauderdale, FL – Feds: Rothstein Showered Police with Gratuities

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    Scott RothsteinFort Lauderdale, FL – A decade before Scott Rothstein befriended Gov. Charlie Crist and others in high places, he had cozied up to local cops.

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    That long-standing relationship was highlighted last week when federal authorities charged Rothstein with masterminding a $1.2 billion investment scheme — including using some of that money to shower on police officers.

    Federal prosecutors say Rothstein and other co-conspirators used funds illegally obtained from the Ponzi scheme to hire local officers to provide security for his law firm and Fort Lauderdale waterfront home.

    Rothstein, 47, provided “gratuities to high-ranking members of police agencies in order to curry favor with such police personnel and to deflect law enforcement scrutiny of the activities of [the law firm] and defendant Rothstein,” according to the charges filed against the now-disbarred lawyer.

    The charges don’t identify any police officials or departments. But sources familiar with the federal investigation said Rothstein gave the gifts to Broward Sheriff’s Office Lt. David Benjamin and Fort Lauderdale Police Chief Frank Adderley — including meals at a local restaurant.

    Adderley declined to comment through a spokesman, but he recently told The Sun-Sentinel that he paid for his own weekly meals at Bova, a restaurant owned by Rothstein, and for sporting events he attended with the attorney.

    Benjamin could not be reached.

    Rothstein hired dozens of Fort Lauderdale police to guard his home around the clock, as well as Bova and the law firm. He paid $45 an hour — the going rate — for the details, starting last year after the murder of an attorney at his firm, Melissa Britt Lewis.

    By surrounding himself with police, Rothstein created an aura of legitimacy for investor clients. Visitors to his office would have seen the large photo of Broward Sheriff Al Lamberti with the hand-scrawled thank-you note, in addition to numerous photos of other powerful figures such as Crist.

    “If someone is dealing in the underworld, you wouldn’t think they would be surrounded by police officers,” said Bill Scherer, a Fort Lauderdale attorney representing multiple aggrieved investors.

    Rothstein’s ties to police started modestly.
    In 1997, the Plantation police union hired the little-known labor lawyer to represent officers facing discipline.

    “When he was at the table, he was as good as it gets,” said Michael Hanlon, president of the Fraternal Order of Police chapter. “Scott was a very well-informed and very skillful negotiator.”

    After Rothstein launched his new firm in 2002 with a handful of lawyers — it would grow into the 70-lawyer Rothstein Rosenfeldt Adler on Las Olas Boulevard — his underlings took over representing Plantation officers, and briefly the Florida FOP.

    Rothstein had moved on to more prominent police figures, including Lamberti, the most powerful official in Broward.

    Rothstein met Lamberti through Hall of Famer Dan Marino, the sheriff said Thursday. Rothstein had given generously to Marino’s foundation.

    Lamberti and Rothstein had another connection: Benjamin, a longtime friend of Rothstein’s and the sheriff’s executive officer. Benjamin escorted Rothstein to a Gulfstream jet when the lawyer fled to Morocco as his scheme blew up in late October.

    Last month, BSO internal affairs launched an investigation into whether Benjamin followed proper procedures seeking permission to start DWB Consulting, a company he launched earlier this year with the help of an attorney at Rothstein’s law firm.

    Lamberti has stripped Benjamin of his post overseeing internal affairs and moved him to a less prominent position in juvenile intake.

    “When you look at it, Dan Marino, his own rabbi, 70 partners in his law firm who were very close to him and very close to the day-to-day operations, didn’t know. How was I supposed to know?” Lamberti told The Miami Herald about Rothstein.

    “Six months ago he was a hero to the community, successful lawyer, philanthropist, gave a lot of money to charities. Six months ago, he was a pillar of the community; today he’s a pariah.”

    Lamberti said when he learned about Benjamin’s company, he initiated the internal investigation. “We are going to look into it and get to the bottom of what that relationship was,” he said.

    Rothstein wielded his influence on both sides of the sheriff’s race.
    He and his allies — including law firm employees and investors — gave to both Lamberti’s and Democratic opponent Scott Israel’s campaigns. But they were limited to $500 donations. The larger influence came through five-figure donations to political committees linked to both sides.

    Rothstein, through a business, gave $50,000 in October to a pro-Lamberti political committee, the Broward Citizens for Truth. Meanwhile, Rothstein also met with Israel twice during the campaign and promised to raise money for him, Israel said.

    Stuart Rosenfeldt, co-owner of Rothstein’s law firm, made $150,000 in donations in October — $90,000 to a committee on Israel’s side, $60,000 to a pro-Lamberti group.

    Rosenfeldt said that the money he gave was his own, but he declined to answer whether Rothstein told him to donate.


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