Nov 6, 2009 8:01 pm US/Eastern
Rothstein Law Firm Tries Returning To Normalcy
FT. LAUDERDALE (CBS4) ―
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Attorney Scott Rothstein's posh private office was built with soundproofing for maximum in privacy.
CBS
The on-going saga of attorney Scott Rothstein continued in Broward Circuit court Friday.
"It's getting tougher by the day for the firm. We're taking it one day at a time," said Kendall Coffey, who was hired as legal counsel for Rothstein Rosenfeldt, and Adler.
Coffey says e-mail service at the firm has been paralyzed because the FBI seized computer servers during a raid on Wednesday night. But he says they are working with the government to restore normal functions.
On Monday it was revealed that Rothstein may have been operating an elaborate Ponzi scheme defrauding investors out of millions of dollars.
The court appointed receiver for the firm, Herbert Stettin, told a judge that $300,000 has been received in a new account, and that $200,000 of that money is from the Florida Democratic party, which returned a donation that Rothstein had made.
But Stettin says he hasn't been getting much cooperation from TD Bank, which handled some of the investment money for Rothstein. "In effect they're stonewalling us," said Stettin.
The judge signed an emergency order to force TD Bank to turn over all financial documents by Monday 12 Noon.
Stettin said they've asked all workers at the lawfirm to stay on for two weeks without the assurance they will be paid, although they will be assured medical benefits.
Also in court Friday, was attorney Alexandra Sanchez.
Sanchez says she represents 3 different groups of investors who lost $5 million investing in the firm's structured settlements.
"Having gone through the documents, they had every reason to believe these were legitimate investments," said Sanchez.
"It's always a surprise when bright people are taken, but that's the real artistry of the con artist," said Kendall Coffey.
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