White-Collar Crime

CBS: Lawyer Stung Mafia Suspects to Get Witness Time in $1.2B Scheme


Just when it might seem that the saga of the $1.2 billion Ponzi scheme ex-attorney Scott Rothstein allegedly orchestrated under the guise of a South Florida law firm couldn’t get much more bizarre, a new plot twist worthy of a John Grisham or Scott Turow novel has hit the headlines.

Returning from an abortive flight to Morocco this fall and facing prosecution for his just-uncovered massive fraud, Rothstein began cooperating with the Federal Bureau of Investigation not only concerning his own crime but to bring down suspected Mafia figures, reports the CBS 4 I-Team, citing anonymous sources.

In exchange for his cooperation in pretending he needed the organized crime suspects’ help to destroy incriminating financial records and launder money, Rothstein will serve time under a new identity in the federal witness protection program, the article states, again relying on unidentified sources.

It also says he is cooperating with the feds’ investigation of others involved in his own Ponzi scheme and offering information about campaign finance law violations, hoping to win a sentence reduction through all of the help he is providing.

For more details, read the full article.

Additional coverage:

ABAJournal.com: “A Subdued Scott Rothstein Pleads Guilty in $1.2B Ponzi Scheme”

ABAJournal.com: “Trustee Sues Rothstein Partner for $10M, Alleges Charges for Jewelry, Home Repairs & Reptiles”

CBS 4: “FBI Arrests Mafia Suspects In Miami, NY, & Italy”

Daily Pulp (Broward-Palm Beach New Times): “Scott Rothstein Was Informant In International Mafia Case”

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