Two senior law partners of convicted Ponzi schemer Scott Rothstein received $18 million in “purported loans” from his Fort Lauderdale firm — and then almost immediately repaid most of the money to the firm, Rothstein or others, according to allegations in new bankruptcy court filings.
Bankruptcy lawyers sorting through the wreckage of the firm say its co-owner, Stuart Rosenfeldt, and partner Steven Lippman funneled millions from the “loans” to third parties, including name partner, Russell Adler; a Broward County nightclub owner who did business with Rothstein; and a victim in Rothstein’s investment scam.
Rosenfeldt and Lippmann engaged in curious and circuitous movement of firm funds, through “the systematic trading of checks with [the Rothstein Rosenfeldt Adler firm] and paying third parties with RRA funds,” the bankruptcy lawyers said in a complaint filed Thursday.
A former federal prosecutor in South Florida said these transactions create a “target-rich environment” for the FBI and U.S. attorney’s office.
“Clearly, movement of funds under these circumstances raises suspicion to a trained observer as to at least the possibility of structuring transactions to launder funds,” said former chief assistant U.S. attorney Myles Malman, a white-collar criminal defense lawyer in Fort Lauderdale. “Who knew what and when will be the key as to any federal charges.”
Their latest bankruptcy court papers also disclose this detail: Rosenfeldt — who owned half of the firm, while Rothstein owned the other half — charged $1 million on his firm-issued American Express card to pay for 72 pieces of jewelry for his wife, Susanne, along with home furnishings, clothes, vacations, restaurant meals, exotic reptiles and “numerous” local hotel room charges.
Rosenfeldt also transferred at least $690,000 in purported loans or salary payments to his wife, on 30 separate occasions.
All three partners also received hundreds of thousands of dollars in salary bonuses in 2008, and then they and their wives immediately turned around and contributed much of the money to the GOP presidential ticket of John McCain and Sarah Palin, court papers show.
The three partners’ defense lawyers maintain that Rosenfeldt, Adler and Lippman committed no wrongdoing. The trio — along with other firm employees — are under federal investigation for possible fraud, money laundering, tax evasion and campaign violations as part of the Rothstein racketeering case, according to sources familiar with the probe.
Rothstein pleaded guilty in late January to five counts of racketeering, fraud and money laundering stemming from his sale of fabricated legal settlements to investors. Rothstein, who authorities say ran a $1.2 billion Ponzi scheme, faces up to 100 years in prison at his May 6 sentencing.
(Read More http://www.miamiherald.com/)
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Scott Rothstein they said had been convicted and so was Bernie Madhoff.
What’s with what seems like one money scammer after another all (or at least mostly) seem to be Jews.
Is this true? And if so, what are to say to the antisemites who claim that they have every right to hate Jews because they point to those like these guys and say “see what the Jews do” .
This is just about the worst Chillul H-sh-m possible.
True they are not Frum, but the Jew haters don’t care much about that.