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Fort Lauderdale, FL - Alleged Ponzi Schemer to Plead Guilty

Published on: January 6, 2010 10:07 AM
By: AP
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Fort Lauderdale, FL - Accused Ponzi schemer Scott Rothstein is working on a guilty plea with federal prosecutors that could keep him from spending the rest of his life behind bars, according to his attorney.

Accused of running a $1.2 billion dollar Ponzi scheme from his law firm, Rothstein pleaded not guilty in December to five charges which included fraud, racketeering and conspiracy.

Facing a maximum of 100 years in prison for those charges, it looks like Rothstein is ready to make a deal.

“I can tell you that there will be a change of plea to guilty,” Rothstein’s attorney Marc Nurik said yesterday. “We don’t have any finalization on the details at this point.”

Nurik will be in court later today where he will ask a judge to set a date to formally change Rothstein’s plea. Nurik said he and prosecutors haven’t ironed out the exact charges Rothstein will plead guilty to.

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By entering a guilty plea, Rothstein will likely have his sentence reduced.

Rothstein, 47, was arrested on Dec. 1 after a lengthy investigation by authorities begun as early as October. The former high-powered lawyer, now disbarred, has been sitting in a jail cell after he was denied his release last month.

Prosecutors allege that Rothstein used his position at his Rothstein Rosenfeldt Adler law firm to dupe clients into investing in nonexistent legal settlements. Rothstein allegedly made off with millions, which he used to fund his lavish lifestyle of pricey homes, sports cars and expensive jewelry.

Rothstein’s cooperation could pave the way for more arrests and indictments in the alleged Ponzi scheme.


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Read Comments (2)  —  Post Yours »

1

 Jan 06, 2010 at 11:10 AM Anonymous Says:

From a legal standpoint this is very bad for any charity he donated to. When a company goes bankrupt ordinarily any transfers (assuming they aren't super large and in the normal range of what was given in the past) will be protected from a Trustee collecting assets. However, when a Ponzi scheme is involved it is deemed that the giver had no legitimate assets and all such donations are recoverable. Charties have been getting bombarded with Trustee's and Reciever's demands and suits to recover charitable contributions that have long been spent.

2

 Jan 06, 2010 at 09:47 PM Anonymous Says:

When I went to your office with the documents that your firm should have filed for my husband's appeal and not the garbage you send for his appeal, your were sitting with downstairs having a drink with one of your partners. You told me to get use to it but my husband was going to be in jail for a while even though he was innocent. Well, it is amazing how the tables have turned for you, how does it feel to be locked up? Of course you are a true thief and you will only get what you deserve.

3

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