Disgraced ex-attorney Scott Rothstein pleaded guilty Wednesday in Fort Lauderdale federal court to running South Florida’s largest investment scam, totaling $1.2 billion.

Dressed in a tan prison jumpsuit and shackled at ankles and wrists, the formerly high-flying lawyer displayed no emotion as he acknowledged guilt for operating a massive Ponzi scheme that destroyed his law firm and sucked dry the bank accounts of his investors and law clients.

Rothstein, 47, did not address the court, other than to answer yes or no to questions from the judge. But his wife, Kimberly, shared her feelings after the proceeding:

“Today is the saddest day of my life,” she read from a prepared statement. “Two years ago, when I married the sweetest man I’d ever met, I would never have believed our future together could come to this.”

Rothstein, charged in December with five counts of racketeering, fraud and money laundering, faces up to 100 years in prison. But his ultimate sentence — set for May 6 — may be in the 30-year range because he returned from a last-minute flight to Morocco, detailed his crime for authorities and named others who aided him or benefited from the illegal profits.

Kim Rothstein stressed that she is not among those facing scrutiny as potential accomplices to her husband’s scheme.

Wednesday was exactly three months since Scott Rothstein took a private jet to Morocco to escape the imminent implosion of his Ponzi scheme.

After his return, he pinpointed for federal authorities hundreds of homes, cars, jewelry, watches, businesses, bank accounts and other personal assets purchased with the tainted proceeds of the Ponzi scheme over the past four years. Authorities have seized about $60 million in Rothstein assets.

Rothstein, now in custody at the Federal Detention Center in Miami, also made large campaign contributions to high-powered politicians, including Gov. Charlie Crist. Crist also got big donations from Rothstein’s wife and several of his former law partners. The politicians have returned much of the money.

His scheme generated hundreds of millions of dollars by selling fabricated employment discrimination and other civil settlements to wealthy investors.

The investors bought the settlements at a discount to pay off purported plaintiffs with the expectation of receiving the full payments over time.

Rothstein kept the scheme alive by paying off old investors with money from new investors, until it all unraveled. Levin, who headed a group of investors, reported his suspicions about Rothstein when his funds did not receive a scheduled payment.

The scheme sent shock waves through the Frum community of Flatbush, after approximately 100 million dollars – invested by prominent baalei tzedaka – were allegedly lost in the scam. 

(Source: Miami Herald / YWN-NYC)