by Brian Mahany
Two days before Christmas we posted a story about convicted Ponzi schemer (and disbarred lawyer) Scott Rothstein. Back then he said he was going to name names in a bid to reduce his sentence. When the story first broke, Rothstein had thrown his former bankers at banking giant TD bank under the bus with wild accusations that they knew he was operating a Ponzi scheme yet helped facilitate the fraud.
TD Bank denied the allegations of course. In the normally staid banking world, Rothstein’s allegations caused an uproar. But “you ain’t heard nothing yet”, as the popular expression goes.
According to the Associated Press and the Broward / Palm Beach New Times, Rothstein is now throwing his former law partners, cops, politicians and even judges under the bus in hopes of reducing his sentence. Published reports say that over a $1 million of cash bribes and prostitutes helped him pull off his $1 billion Ponzi scheme.
Said Rothstein, “In its simplest terms, it is the ability to do whatever you want, whenever you want, wherever you want, by whatever means you can think of… Chartering jets. Not waiting in lines at any restaurant or any club.” He claims one of his former law partners was racking up $5000 a week in prostitutes. Rothstein spins a tale of excesses beyond belief and a life of privilege few can imagine, all while bilking investors out of hundreds of millions dollars.
If it isn’t enough to take down his former business associates, Rothstein’s story implicates his own uncle, friends and even the mob.
While we are not even sure if that is possible to spend a million bucks on hookers, those that he has accused say that it is all lies and the fabrications of a desperate man hoping to reduce his 50 year prison sentence. (He should be able to get released in about 42 years if still alive.)
Rothstein’s stories aren’t amusing for his former bankers, law partners, employees and of course, his victims. It could take years of lawsuits to figure out if Rothstein acted alone or if others are responsible. Unfortunately, we may never learn the true story.
If you are a victim of an investment fraud or Ponzi scheme, call us. The earlier we get involved, the better chance that we can recover your money. Unfortunately, although Madoff may be the largest investment fraud and Rothstein the most colorful, thousands of frauds are uncovered every year.
Mahany & Ertl -America’s Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine and Minneapolis, Minnesota. Services available in most jurisdictions.