Rich Guys Club

Former NFL star Warren Sapp, some of America’s biggest banks and tax collectors from Florida to Rhode Island are laying claim to a piece of the collapsed empire of disbarred attorney Scott Rothstein, who is awaiting sentencing after pleading guilty to operating a $1.2 billion Ponzi scheme.

U.S. District Judge James I. Cohn began sorting through the claims Friday, including one from the bankruptcy trustee for Rothstein’s defunct law firm who says more than $469 million is being sought by investors and creditors. Cohn said he hoped to settle the claims — a list of 46 expected to quickly grow larger — by the end of August.

“I intend to put these claims on the front burner,” Cohn said.

The question involves which of Rothstein’s former assets — including dozens of pieces of real estate and homes, business interests, luxury vehicles, yachts, jewelry and bank accounts — should be forfeited to the U.S. government and which should go to individuals, banks or companies who claim they are the true owners.

For example, Wachovia bank contends that it owns a $2.75 million commercial property in Pompano Beach. Rothstein’s former law partner, Russell Adler, says a downtown New York condominium is “100 percent” his and has no link to the Ponzi scheme. Tax collectors in Miami-Dade and Palm Beach counties in Florida and the town of Narragansett, R.I., are demanding taxes owed on several Rothstein-related properties.

Read More: – By Curt Anderson, the Associated Press

A disbarred attorney who courted politicians and star athletes and led a flamboyant lifestyle even by South Florida standards pleaded guilty Wednesday to federal charges that he ran a $1.2 billion Ponzi scheme.

Scott Rothstein, 47, pleaded guilty to all five counts against him, including wire fraud, money-laundering conspiracy and a racketeering charge commonly used to take down Mafia chieftains. The charges carry a maximum sentence of 100 years in federal prison. Sentencing is set for May 6.

Rothstein said little during a brief hearing Wednesday, other than responding “guilty” to the charges and answering the judge’s many questions with “yes” or “I understand.”

His wife, Kim Rothstein, spoke publicly about the case for the first time, reading a statement to reporters outside the courthouse.

“Today is the saddest day of my life,” she said. She also denied wrongdoing in the scheme, though federal officials have never accused her of being involved.

Read More: – the Associated Press

A disbarred South Florida attorney agreed Wednesday to plead guilty later this month to charges arising from an alleged Ponzi scheme that cheated thousands of investors out of $1.2 billion.

Scott Rothstein is charged in a five-count indictment with racketeering, conspiracy and fraud in a scheme that ran from 2005 to 2009.

Rothstein attorney Marc Nurik said his client, who has been jailed without bail since his Dec. 1 arrest, is focused on returning as much money as possible to investors. Mr. Nurik said Mr. Rothstein’s seized assets — two dozen pieces of real estate, numerous luxury cars, jewelry, bank accounts and more — are worth between $60 million and $100 million.

“He said from the very get-go he is going to accept responsibility for his actions,” Mr. Nurik said. “My goal is getting money back to legitimate investors and determining who the legitimate investors are.”

As the scheme unraveled, politicians and parties, including Florida Gov. Charlie Crist, were forced to return thousands of dollars in donations from Mr. Rothstein.

Mr. Rothstein, 47, said little at the hearing other than to answer a few of the judge’s questions. The once-dapper attorney, now dressed in typical drab beige prison jumpsuit, was led in chains into the courtroom by U.S. marshals.

Read More: – By Curt Anderson,Associated Press

Federal authorities are seizing Fort Lauderdale attorney Scott Rothstein’s properties — sports cars, waterfront homes, power boats and bank accounts — as part of a criminal investigation into his alleged multimillion-dollar investment scam.
Shortly before 10 a.m. Monday, two FBI agents, an IRS agent and two truck drivers were spotted in downtown Fort Lauderdale seizing Rothstein’s fire engine red Ferrari Spider convertible.
The car was being towed near the intersection of Southeast Sixth Avenue and Second Street close to the Rothstein Rosenfeldt Adler law firm, where Rothstein is suspected of carrying out a massive fraud against dozens of investors. Rothstein, 47, has not been charged.
FBI agents were also seen shortly before 11 a.m. at Rothstein’s Fort Lauderdale home at 30 Isla Bahia Dr. Agents appeared to be logging in information about Rothstein’s cars, including a silver Rolls Royce, a white Bentley with a blue convertible top and a white Cadillac Escalade. A few FBI agents and an IRS official were outside manning the gate while several others were inside.

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