Former bank exec indicted, accused of aiding disbarred attorney Scott Rothstein's $1.2B fraud
A fired Toronto Dominion Bank executive has been federally indicted in a wire fraud and conspiracy case, accused of aiding now-disbarred attorney Scott Rothstein in a $1.2 billion investment fraud.
In addition to allegations that he helped Rothstein steal millions of dollars of investor money from trust accounts at TD Bank, former regional vice president Frank A. Spinosa Jr. is also accused of bolstering Rothstein’s false claims to investors in a Ponzi scheme operated from his now-shuttered Fort Lauderdale, Florida, law firm, the Miami Herald (sub. req.) reports.
After Spinosa’s arrest Friday morning at his Fort Lauderdale home, the 53-year-old appeared in federal court and was soon released on $250,000 bail. He pleaded not guilty and is looking forward to being able to tell his side of the story at trial, his lawyer said.
The grand jury indictment, which was unsealed Friday, charges him with five counts of wire fraud and one count of wire fraud conspiracy, the Sun Sentinel reports. Each carries a maximum prison sentence of 20 years, upon conviction.
Rothstein is serving a 50-year federal prison term under the witness protection program. He cooperated with authorities as they pursued cases against nearly 30 of his former associates, including a number of lawyers. Approximately two dozen individuals had been convicted, at last report.
In 2011, testifying in a law firm bankruptcy case, Rothstein claimed he had paid Spinosa off and once gave him an envelope containing $50,000 during a lunch meeting, the Herald reports.
“Same con man, different motivation,” Spinosa’s lawyer, Sam Rabin, told the newspaper at the time, contending that the facts contradicted self-interested claims by Rothstein, who reportedly hopes to win a reduced prison term through his cooperation.
“The indictment comes as a relief to Mr. Spinosa,” Rabin told the Herald after a Friday bond hearing. “He will finally have his day in court and be able to explain why he is innocent to a jury.”
The Daily Business Review (sub. req.) also has a story about Spinosa’s indictment.
Related articles:
ABAJournal.com: “TD Bank to pay $52.5M to settle regulatory complaints related to ex-attorney Rothstein’s $1.2B fraud”
ABAJournal.com: “11th Circuit OKs $67M verdict against bank in case linked to ex-law firm chief’s $1.2B fraud”
See also:
ABAJournal.com: “3 new pleas linked to ex-law firm chief serving 50 years in $1.2B swindle; 20th conviction now looms”
ABAJournal.com: “Ex-bank exec is latest to face criminal case linked to ex-lawyer’s $1.2B scheme; victims to get $50M”
