US Says $10M in Rothstein Ponzi Cash Paid Law Firm Salaries; Bugatti Seized
An amended forfeiture filing alleges that proceeds from an alleged Ponzi scheme operated by South Florida lawyer Scott Rothstein helped finance his law firm, Rothstein Rosenfeldt Adler.
The amended filing by the Miami U.S. attorney’s office says the now-dissolved law firm earned about $8 million in one recent year, but paid its staff salaries of $18 million, according to the Miami Herald and the Associated Press.
“The additional $10 million for salaries, as well as other expenses for operation of the law firm, came from the operation of and the funds generated by the Ponzi scheme,” the filing alleges.
The filing also details the items the feds have seized from Rothstein, or are seeking to seize. They include a 2009 Bugatti Veyron valued as high as $1.7 million, and 19 other luxury cars, including three Ferraris, two Rolls-Royces, a Maserati, a Bentley, a Lamborghini, and three Corvettes, according to the stories.
Authorities also are working to seize bank accounts in Morocco that held about $15 million, 15 pieces of property and Rothstein investments in more than 20 companies. Other seized items include 304 pieces of jewelry, a guitar collection worth as much as $20,000, $80,000 in American Express gift cards, and $272,000 in cash.
Prior coverage:
ABAJournal.com: “A Rothstein October Surprise: Hundreds of Missing Millions; Suit Blames Bank”
ABAJournal.com: “Lawyers Find New Jobs Despite Stigma of Claimed $1B Rothstein Scheme”
ABAJournal.com: “Accused of Running $1B Ponzi Scheme, Rothstein Gives Up Law License”
ABAJournal.com: “ ‘Sonic Boom’: Rothstein Churned $250M in Trust Funds Last Month, Lawyer Says”
