- Ex-Rothstein Partner Will Pay Up to $500K to Settle Clawback Suit re Alleged Excess Compensation
Ex-Rothstein Partner Will Pay Up to $500K to Settle Clawback Suit re Alleged Excess Compensation
Posted Feb 28, 2011 3:55 PM CDT
By Martha Neil
A former partner of the now-defunct Rothstein Rosenfeldt Adler law firm has agreed to pay up to $500,000 to settle a bankruptcy trustee's claim that he received excess compensation while he was still working there.
Russell Adler, who also agreed that he can't file for personal bankruptcy to avoid the debt, will either pay $350,000 within the next 30 months or $500,000 after that, reports the Bankruptcy Beat blog of the Wall Street Journal.
A federal bankruptcy court judge in Fort Lauderdale approved the settlement on Friday.
Adler was apparently not an equity partner of the South Florida firm even though he was a name partner.
The firm imploded after its managing partner, Scott Rothstein, was accused of running a massive Ponzi scheme. Rothstein is now disbarred and serving a hefty prison sentence, but no other lawyer has been criminally charged.
ABAJournal.com: "‘Totally Fooled’ by Now-Convicted Rothstein, Law Partner Tries to Explain What He Did for $450K Pay"
ABAJournal.com: "Partner of Bankrupt Rothstein Law Firm Faces Pay Clawback Trial Next Month"