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Bankruptcy Law

Former Gen’l Counsel David Boden is Target of $37.8M Rothstein Law Firm Clawback Suit

Posted Oct 27, 2011 6:36 PM CDT
By Martha Neil

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An attorney licensed in New York who served as general counsel for the Florida law firm formerly run by now-convicted Ponzi schemer Scott Rothstein is facing a $37.8 million clawback suit.

The suit, which was filed today in bankruptcy court in Ft. Lauderdale, seeks $1 million that David Boden allegedly was paid while working as Rothstein's right-hand man at Rothstein Rosenfeldt Adler, plus another $36.8 million in damages, reports the South Florida Sun-Sentinel.

Although Boden said in a tearful deposition last year he had no idea that Rothstein was a criminal, the bankruptcy trustee's suit contends he either knew or should have known of his boss's $1.2 billion investment scam.

In Feb. 2009, eight months before the Ponzi scheme imploded, the complaint alleges, Rothstein instructed Boden to make a confidential $4.25 million settlement with two investors who had questioned why money wasn't being held in escrow.

It also alleges that Boden was supposed to verify 35 of the purported structured settlements that Rothstein sold to investors. The settlements were fictitious, so Boden either failed to do so or participated in the fraud, the complaint contends.

The newspaper couldn't reach the lawyer representing Boden for comment.

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