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$1.2 billion Ponzi saga
ABCD
Fort
Lauderdale/USA - Disbarred Florida lawyer Scott
Rothstein (photo) pleaded guilty om January 6, to defrauding investors of $1.2-billion over four years in a massive Ponzi
scheme, which means he will avoid trial and could get a reduced
sentence. Through the firm he co-founded, Rothstein Rosenfeldt Adler
PA (RRA), Rothstein sold fake legal settlements to investors at a discount, promising repayment at full
price. Subpoenas were issued for Rothstein's biggest
investor- George Levin, whose Banyon investment funds put $775 million into the
Ponzi, and Michael Szafranski, a financial advisor. Some employees in Scott Rothstein's now-bankrupt law firm
also played criminal roles. The law firm's partners Stuart Rosenfeldt and Russell Adler, general
counsel David Boden, and auditors Berenfeld Spritzer Shechter
Sheer, are also under scrutiny. The preceding judge in
Rothstein's case is Robin Rosenbaum, the acting U.S. attorney is Jeffrey Sloman.
At the beginning, Rothstein said he had three options: kill
himself, live life on the lam as a fugitive or go to prison and risk being killed there because he has made
enemies.
Last week, federal agents seized $60 million worth of assets. Among the items were 20 luxury cars, 15 real-estate properties, an 87-foot yacht, 304 pieces of jewelry and $12 million stashed in Moroccan
banks. There are Rothsteins $2 million in political contributions since 2006, including over $500,000 to John McCain's presidential campaign and the national Republican Party. Democratic politicians also received donations from
Rothstein. Rothstein called himself 'Jewish Avenger'.
Scott
Rothstein is not related to the Jewish billionaire Sumner
Redstone  ,
born Murray Rothstein, Viacom Inc. owner, known for producing pornographic videos
and gangsta rap on its MTV station, and Arnold Rothstein
(1882-1928), pioneer of organized crime in the United
States
. Rothstein's law partner Melissa Britt
Lewis was murdered in March 2008 under dubious
circumstances .
Madoff
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