Crimewatch

MIAMI (CBS4) ― The Broward County political establishment took another major hit Monday when news broke that Scott Rothstein – founder of the Fort Lauderdale based law firm Rothstein Rosenfeldt Adler – may have fled the country after questions were raised by his partners about millions of dollars in missing money from the firm's trust accounts.

"It is with surprise and sorrow that the attorneys of Rothstein Rosenfeldt Adler have learned that Scott W. Rothstein, the managing partner and CEO of the firm, has, according to assertions of certain investors, allegedly orchestrated a substantial misappropriation of funds from investor trust accounts," attorney Kendall Coffey wrote in an emergency filing asking the courts to appoint a receiver to help them sort through the firm's finances. Coffey was hired by the remaining partners in the firm.

Monday afternoon a hearing was held before Broward Circuit Judge Jeffrey Streitfeld but no decision was made on who should oversee the eventual dissolution of the law firm, which employs more than 150 people, including 70 lawyers. A second hearing was set for Tuesday.

"This has been a seismic blast that has been devastating to the law firm," Coffey told Judge Streitfeld. "There have been a number of resignations today in the wake of this bombshell."

Outside the courtroom, attorneys packed the hallway. Many of the attorneys represented investors and creditors who fear their money is gone.

"Right now all we know is the money's gone, Scott's gone and we are trying to find out what happened," said Jeff Sonn, an attorney for one creditor he refused to identify. ""It is too early to tell precisely what kind of scheme it was."

It appeared, however, that in addition to possibly raiding client trust funds the scheme also primarily involved a separate company Rothstein set up to sell investments in structured settlements.

Shortly after the hearing got started, a man pleaded with sheriff's deputies to let him enter the packed courtroom, saying he had rented a private jet to fly down from New York and that he was afraid Rothstein had stolen millions from him.

Rothstein has not been charged with any wrongdoing. The FBI is reportedly now investigating the allegations. Rothstein's attorney did not respond to requests for an interview.

Stuart Rosenfeldt, who started the firm with Rothstein in 2002, appeared shell shocked Monday at the courthouse.

"It's just very sad to see a beautiful thing that we built fall apart," he said.

He said he learned there were problems with the firm's finances Friday "when people who were friends of Scott called me up and told me he had stolen money from them."

How much?

"I have no clue, but they represented to me it was in the hundreds of millions of dollars," Rosenfeldt said.

Rosenfeldt said he tried to contact Rothstein when the allegations first surfaced but could not get Rothstein on the phone. Instead, he said, they traded a few text messages. He would not say what the messages were.

"Scott was like a brother to me and that's all I really can say," he said. "And I'm shocked and dismayed to find out what I've learned in the last few days."

Press reports say Rothstein may have fled to Morocco, a country that does not have an extradition treaty with the United States.

If the allegations against Rothstein are true they would mark an incredible fall for a man who just a few months ago seemed very much in control of the political world around him. A major fundraiser for Gov. Charlie Crist and John McCain during last year's presidential race, his firm had grown from just a handful of attorneys in 2002 to more than 70 in offices throughout Florida and in Washington.

Rothstein also has contributed to numerous charities, including a foundation for children and youth run by former Miami Dolphins star Dan Marino and former Miami Heat star Alonzo Mourning.

Rothstein has considerable personal wealth, and owns a $6.4 million home in Fort Lauderdale, properties in Manhattan and along Rhode Island's coast, and a large collection of expensive cars, including a Rolls-Royce and a Bentley.

The well-connected attorney was protected around the clock, until today, by off-duty Fort Lauderdale police officers. That assignment, which was paid for by Rothstein, has now been canceled by top officials at the police department, a spokesman said.

According to Rosenfeldt, Rothstein operated a business using the law firm's name in which legal settlements were purchased and then offered for sale to investors.

"Various investors have informed the firm that they believe substantial funds are not properly accounted for and are missing," Rosenfeldt's motion says, adding that some investors claim Rothstein "may have been fabricating nonexistent" legal settlements for sale.

The exact amount of money involved isn't known. Rosenfeldt said the firm's law practice will continue and there is no evidence that any other lawyers were involved.

The allegations come on the heels of two high-profile FBI corruption investigations in Broward County that resulted in criminal charges against Dr. Alan Mendelsohn, a politically-connected ophthalmologist, and three local politicians accused of taking bribes to steer business toward favored companies. More charges are likely in those cases, which are unconnected to Rothstein but have rocked the county's political establishment.

CBS4.com's Dave Game contributed to this report.

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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