Fla. ex-attorney pleads guilty in $1.2B Ponzi scam (Scott Rothstein)

AP via Breitbart ^ | January 27, 2010 | Curt Anderson

[CutePuppy]

A disbarred attorney who courted politicians and star athletes and led a flamboyant lifestyle even by South Florida standards pleaded guilty Wednesday to federal charges that he ran a $1.2 billion Ponzi scheme. Scott Rothstein, 47, pleaded guilty to all five counts against him, including wire fraud, money-laundering conspiracy and a racketeering charge commonly used to take down Mafia chieftains. The charges carry a maximum potential sentence of 100 years in federal prison. Sentencing is set for May 6.

The plea caps a downward spiral that began in late October, when court documents say Rothstein fled Florida on a chartered jet to Morocco carrying $500,000 in cash after wiring another $16 million to a Casablanca account he controlled. He returned to face charges and has been in federal custody since the FBI arrested him Dec. 1.

It was a swift fall for Rothstein, who in the months before had hosted fundraisers or other events for state and national politicians including Florida GOP Gov. Charlie Crist and 2008 Republican presidential nominee John McCain and his running mate, former Alaska Gov. Sarah Palin.

The state's Democratic and Republican parties and Crist have since returned hundreds of thousands in contributions from Rothstein, whose office was festooned with political and sports photos and memorabilia. He gave generously to dozens of charities.

Prosecutors say it was all an elaborate facade, meant to lend an air of power and respectability to Rothstein's four-year scam. They say he used fake legal cases — at least once forging the signature of a federal judge — to lure people with promises of huge payouts over time in exchange for an up-front investment.

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The law firm Rothstein Rosenfeldt Adler is now defunct, with as many as 50 of its 70 former attorneys under investigation by the Florida Bar...

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[CutePuppy]

Mini-Madoff Scott Rothstein had ties to Republicans (Crist, McCain et al) and Democrats (Reid et al) but AP wouldn't mention Democrats.

[Dr. Bogus Pachysandra]

Is he related in any way to Arnold Rothstein?

[CutePuppy]

Even though it's not a new "scandal" this can't be helpful to Crist, and Fazio is already ahead in some polls.

Meanwhile, the Florida Democratic Party returned $200,000 in contributions from Rothstein and his law firm, with the state GOP returning some $150,000. Crist returned $9,600 that Rothstein and his wife, Kim, had given to Crist's U.S. Senate campaign.

[CutePuppy]

Interesting question. Arnold the "Black Sox Fixer" Rothstein.

From Broward Beat.com

M. Goldberg says:

December 2nd, 2009 at 7:40 am
Is Scott Rothstein related to Arnold Rothstein (Mobster-Black Sox scandal)? I know one descendent of the Arnold Rothstein Family who claims to be the only descendent without a criminal record. I guess if Scott is a relative he’s a true descendent of Arnold’s legacy.

FROM BUDDY: I have no answer to this very interesting question. The $1 billion that Scott Rothstein is alleged to have stolen makes Arnold Rothstein look like a 7/Eleven stickup bandit.

[Dr. Bogus Pachysandra]

Hmmmmm!
Makes ya wonder, doesn’t it?

[Frantzie]

The word on the Blogs like Broward Times Bob Norman blog is Charlie Crist may have appointed a judge based on Scott Rothstein’s recommendation.