Alleged Ponzi Schemer Scott Rothstein Ran into Trouble at Prior Firm
Posted Dec 15, 2009 05:26 pm CST
A Florida lawyer arrested in an alleged $1 billion Ponzi scheme had been kicked out of a previous law firm, allegedly for lying to a client.
The Daily Business Review tracked down the story.
Accused lawyer Scott Rothstein worked for almost three years at Phillips Eisinger Koss Rosenfeldt & Rothstein in Hollywood, Fla. Gary Phillips, the former managing partner, told the Daily Business Review that Rothstein was asked to leave for telling a client he had filed a complaint and motion for injunctive relief, when the files indicated nothing had been filed.
Phillips said he did not report the problem to The Florida Bar because he concluded the issue was “not grievable.” Phillips took over the case and filed the motions for the client.
Rothstein left the firm along with Stuart Rosenfeldt, who worked there for eight years. They took about seven associates with them and formed their own firm in 2002. The publication contacted Rosenfeldt, who said he and Rothstein were asked to leave but he does not recall why. He said they were already planning to start a new law firm when it happened.
Phillips told the publication he considered Rosenfeldt an “ethical guy who became starstruck over Scott. Scott was everything Stuart wasn’t.”