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A Rothstein October Surprise: Hundreds of Missing Millions; Suit Blames Bank

Posted Nov 20, 2009, 01:40 pm CST
By Debra Cassens Weiss

Hundreds of millions of dollars disappeared last month from the accounts of South Florida law firm Rothstein Rosenfeldt Adler, a receiver said today in a bankruptcy proceeding.

Bloomberg covered the revelation by the dissolving law firm's receiver, retired Miami Judge Herbert Stettin.

“Huge amounts of money were moved and removed in October,” Stettin said in the Fort Lauderdale court proceeding. “It almost defies logic.”'

Creditors filed an involuntary bankruptcy petition against the law firm after name partner Scott Rothstein came under investigation for allegedly running a Ponzi scheme that could cost investors $1 billion.

A $100 million lawsuit filed today offers more specifics. Investors claim that, in October alone, as much as $500 million moved through Rothstein's accounts… Continue reading...



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