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Nov 25, 2009 2:36 pm US/Eastern
Rothstein Permanently Disbarred In Florida
MIAMI (CBS4) ―
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Scott Rothstein, of Rothstein, Rosenfeldt Adler, P.A.
Charles Trainor Jr./ The Miami Herald
Scott Rothstein, who is suspected of running a $1 billion Ponzi scheme, has been permanently disbarred by the Florida Supreme Court. The Court made the move after Rothstein requested to be disbarred. Rothstein had already quit practicing law after his arrest.
Rothstein hasn't been charged with a crime yet, but federal investigators have seized his assets including bank accounts, luxury cars, boats, and jewelry. On Monday, Federal prosecutors released information about the items they have seized from Rothstein.
A forfeiture filing Monday in the Scott Rothstein case lists more than $17 million in bank accounts, 20 cars, three boats, 15 pieces of property and political and charitable contributions. One of the sports cars is worth nearly $2 million.
The government also went after Rothstein's interests in restaurants and other businesses, hundreds of pieces of jewelry, cash, and even his collections of cigar lighters and a guitar collection worth as much as $20,000.
Proceeds from the seizures will eventually go to benefit investors who say they were bilked of millions.
The forfeiture filing from the Miami U.S. attorney's office also said that Rothstein's now-defunct law firm, Rothstein Rosenfeldt Adler, in a single year earned about $8 million but paid its 150-person staff $18 million in salaries.
"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," said Assistant U.S. Attorney Alison W. Lehr in the filing.
The forfeiture filing provides new details on where Rothstein stashed some of the alleged fraud proceeds and how he spent what prosecutors say were his ill-gotten gains.
The assets include:
- Twenty luxury cars, including three Ferraris; two Rolls-Royces; a Maserati; a Bentley; a Lamborghini; and three Corvettes. Also on the list is a 2009 Bugatti Veyron, touted as the most expensive street car available in the U.S. at about $1.7 million.
- Three accounts at Morocco's Banque Populaire that held about $15 million. Rothstein left for Morocco just before his investment scheme came under investigation but returned to Florida after several days incommunicado.
- More than $160,000 in political contributions to the state Democratic and Republican parties and individual candidates, including GOP Gov. Charlie Crist's campaign for the U.S. Senate and Democrat Alex Sink's campaign for governor. The contributions have already been returned.
- Charitable donations totaling $1.8 million to two Fort Lauderdale hospitals.
- Rothstein's 50,000 shares of stock in Gibraltar Private Bank & Trust and his business interests in several restaurants, the Renato watch company and the South Beach mansion formerly owned by fashion designer Gianni Versace.
- Water vessels including 87-foot Warren yacht, a 33-foot Aquariva and a 55-foot Sea Ray.
Valuables including 304 pieces of jewelry, a guitar collection worth up to $20,000 and 16 DuPont lighters than can retail for between $500 and $1,000.
Several investors filed a $100 million lawsuit against Rothstein and TD Bank, which handled many transactions, to recover the money they lost in the massive Ponzi scheme.
(© 2010 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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