Law Practice Management
Latest Twist in Rothstein Case: Firm Loaned $35M to Lawyers & Others
Posted Dec 23, 2009 3:20 PM CST
By Martha Neil
With $1.4 billion in liabilities and $42 million in assets, according to court filings, the now-defunct Rothstein Rosenfeldt Adler law firm obviously isn't doing well in the wake of an alleged $1.2 billion Ponzi scheme by former attorney Scott Rothstein.
And of that $42 million, $23.9 million represents loans and debts dating back as far as 2005 that are owed by individuals and other parties including a number of partners, reports the South Florida Sun-Sentinel.
Originally, the firm was owed $34.8 million, but about $11 million has been repaid. The newspaper article details some of the loan amounts, including ones made to partners.
Meanwhile, in another development related to the Fort Lauderdale, Fla., law firm, WSVN reports that a number of city commissioners want the Florida Department of Law Enforcement to investigate the police chief's relationship with Rothstein.
Rothstein was disbarred by consent earlier this year after his claimed Ponzi scheme came to light. He is currently facing federal criminal charges.
Related earlier coverage:
ABAJournal.com: "Feds Probe Possible Campaign-Finance Violations by Rothstein Lawyers"
ABAJournal.com: "Filing: Rothstein Made $35M in 2008; Name Partner: I Wasn’t Paid $6M"
ABAJournal.com: "US Says $10M in Rothstein Ponzi Cash Paid Law Firm Salaries; Bugatti Seized"