AmEx to Pay Millions to Victims of Lawyer's $1.2 Billion Ponzi Scheme
American Express tentatively agreed to pay $50,000 plus 65 percent of the illegitimate business expenses of high-profile lawyer Scott Rothstein today in an effort to return cash to victims of Rothstein’s $1.2 billion Ponzi scheme.
Although the final amount will be determined by mutual agreement or arbitrator, the bankruptcy trustee for Rothstein’s now defunct law firm, Rothstein Rosenfeldt Adler, expects the total settlement recovered from the credit card giant will be millions of dollars, reports the Daily Business Review in an article posted by the New York Law Journal (reg. req.).
Rothstein, who pleaded guilty in January to five federal charges of racketeering, money laundering and fraud, charged nearly $21 million in his firm’s name on American Express accounts to help fund a lavish lifestyle for him and his wife, Kim.
American Express plans to file an unsecured claim for nearly $400,000 the company claims it is still owed, according to the Daily Business Review.
Related Prior Coverage:
ABA Journal.com: Bankruptcy Trustee Seeks Clawback from Rothstein’s Pal and Ex-Law Partner Salamone
ABAJournal.com: Totally Fooled’ by Now-Convicted Rothstein, Law Partner Tries to Explain What He Did for $450K Pay
ABAJournal.com: Lawsuit Blames Accounting Firm for $450M in Bankrupt Rothstein Law Firm Losses
ABAJournal.com: Ex-Attorney Rothstein Owes $188M to 218 Ponzi Victims, But They’ll Get Far Less, Feds Say
ABAJournal.com: Lawyer to Plead Guilty Today in $1.2B Ponzi Scheme; Wife Stands by Him
