Rothstein: "I Kept Spending Like It Was Really My Money" (South Florida Con Artist Leniency Letter)

Broward Palm Beach New Times ^ | June 4, 2010 | Bob Norman

[PJ-Comix]

Scott Rothstein wrote his letter to Judge James Cohn asking for leniency.

It really is an extraordinary letter and I'm sharing some of it after the jump.

Of course, that is all designed to show his remorse, extraordinary though it may be. Once again Rothstein is saying what he needs to say. His attorney, Marc Nurik wrote that his client shouldn't be hit with more 30 years because of a "media-induced hysteria"

[PJ-Comix]

Check it out. The full letter is at the Broward New Times. Basically it is a self-pitying whine in an attempt to get a reduced sentence. This is a BIG scandal down here. Even the Ft. Lauderdale police chief was on the take from Rothstein. Not only that, Rothstein was the top contributor to Charlie Crist and came close to getting him on the 2008 ticket as the vice-presidential candidate.

This case also interests me because a friend of mine worked in Scott Rothstein's law office. Her job was mainly to promote celebrity sports events. Not much about the law. She told me that Charlie Crist was VERY close to Rothstein so there might be more coming out about this between now and November. Remember, Rothstein was the BIGGEST contributor to Charlie Crist.

[The_Media_never_lie]

Uh oh.

[PJ-Comix]

About a billion dollars was scammed in his Ponzi scheme. Now Rothstein is pleading for mercy. Read his letter to the judge.

[Liz]

FBI agents in Fort Lauderdale watch over Scott Rothstein's $150,000
2006 Ferrari Spider convertible w/ tan interior being readied for towing.

[Zack Attack]

Come on. He was merely redistributing the wealth. lol.

[Liz]

THE SCAM Rothstein is accused of asking investors to front reduced payouts to plaintiffs and then collect the difference from the full structured payout later. Authorities suspect the lawsuits were fiction, and investors are preparing to sue him.

BACKSTORY---CIRCA Nov 2009---The life of the high-profile lawyer Rothstein who donated lavishly to charitable causes and politicians, including Gov. Charlie Crist, began to unravel in late October, when investors did not receive expected payouts and contacted federal officials. But for months the IRS had already been looking at Rothstein's investment empire, including offshore bank accounts, sources familiar with the case said.

By then, Rothstein had taken off for Morocco, only to cut short his trip to face the federal investigation. The prosecutors poring over the Rothstein evidence are Lawrence D. LaVecchio, Paul F. Schwartz and Jeffrey N. Kaplan. They have decades of experience investigating public corruption, white-collar fraud and organized crime.

They are preparing a massive fraud case against Rothstein, zeroing in on his settlement investments, sources said. But they are also examining allegations of theft from his law firm and client trust accounts. Others said to be under scrutiny, according to sources familiar with the case: Rothstein's legal adviser, David Boden; and his uncle, Bill Brock, who traveled with Rothstein to Morocco. They did not return calls seeking comment.

Last week, Streitfeld removed Rothstein as CEO of his law firm, which is now attempting to pick up the pieces. SOURCE Miami Herald staff writers Amy Sherman, Jay Weaver and Scott Hiaasen contributed to this report. http://www.palmbeachpost.com/news/state/federal-agents-search-lawyer-rothstein-s-estate-seize-46691.html?Palm+Beach+Post+Story+on+Rothstein+with+phot+showing+seizure+of+Ferrari=

[mo]

Only the FEDS are allowed to do that!!!

[PJ-Comix]

What's frightening is how this crook single-handedly made Charlie Crist a contender for the VP nomination in 2008. Not a coincidence that the collapse of Rothstein paralleled the collapse of Charlie Crist. There are MANY photos of Charlie palling around with Rothstein. In fact, I think Charlie served as best man at Rothstein's wedding.

One FUnnie aspect of this is that Rothstein helped to spread the "ugly" rumor that Crist was caught kissing a WOMAN in an elevator. I kept hearing that "ugly" rumor quite a bit a couple of years ago. BTW, this rumor turned out to be not true.

[caww]

.....and we complain of welfare fraud?...only difference are the victims....on the higher end it's the rich who loose...on the lower end it's the taxpayer who looses....the working class man takes the hit from them all.

[moovova]

Appreciate the background connection info.

Keep us posted on updates...especially involving the Cristmeister.

[PJ-Comix]

Rothstein’s first big scam was car dealer Ted Morse. Millions were scammed from him. Speaking of scam victims, Chelsea Clinton’s future father-in-law was a victim of Nigerian mail fraud. He actually got suckered into believing that scam.

[Oceander]

Come on. He was merely redistributing the wealth. lol.

Exactly! Forget about leniency - this guy should be made Commissioner of the Obama Internal Revenue Service. He would fit right in working with that tax evader, Timmy-boy Geithner.

[PJ-Comix]

South Florida FYI

So when does the Ft. Lauderdale police chief get indicted? Actually there were quite a few local politicos on the take c/o Rothstein.

[Krankor]

That guy on the far left is an FBI agent? Undercover?

[dennisw]

My favorite is Alou the wacky tattooed body guard, ex-policeman.

[caww]

Well he can’t be too bright for falling for that..geesh! Everyone knows those are hit and run....

Rothstein can wine and cry all he wants .... carries no water as he is a fraud and continues to be in penning this letter....still playing the system is clear. I doubt any jusge will see this as more than what it is...pleading from a man facing jail time.

[Liz]

Looks like the media-——a photog?

[SatinDoll]

I’m surprised that Mr. Rothstein is still breathing after reading this information.

[Liz]

There's the fire-engine red Ferrari and probably 17 Rolexes at one time, and tons of other extravagant toys. Scott Rothstein was the lead name partner in Rothstein, Rosenfeldt Adler, a Fort Lauderdale law firm of about 70 attorneys - but he was making money not from the operation of the law firm but from the purported sale of structured settlements to investors for a quick 80% return in 12-18 months.

Rothstein was fabricating documents that supposedly memorialized the structured settlements - and then soliciting investors to buy the (supposed) stream of payments in the (supposed) settlement for a discounted up front purchase price. All of the investors he suckered in were very very big rollers - no widows, orphans or otherwise pathetic victims here. Only wealthy chumps.

Broward Circuit Judge Jeffrey Streitfeld instructed Dominion Bank, where Rothstein kept dozens of his investors' accounts, to turn over financial records related to him and his law firm.

Attorney Bill Scherer said he would file a motion to intervene on behalf of investors who claim Rothstein bilked them of at least $98 million by selling them fabricated employment-discrimination settlements and then stealing their money. Investors will assert they are "creditors" and should be allowed to block Rothstein's law firm from collecting any recovered money, including thr law firm's donations to charities and political candidates. Judge Streitfeld removed Rothstein as CEO of his law firm, which is now attempting to pick up the pieces.

Scherer said he would also file a lawsuit against Rothstein for fraudulent transfers concerning real estate and other businesses that he set up as Delaware corporations. Rothstein and some of his law associates created at least 30 shell corporations, in Florida and Delaware, and used some of them to move assets, court records show. On Aug. 10, for example, Rothstein transferred his four Castilla Isle properties to four separate companies based in Delaware, though the companies shared the Fort Lauderdale address of his law firm, 401 E. Las Olas Blvd. The same day, three other properties were transferred from Florida-based companies to Delaware companies — all with the firm's address.

Delaware is known as a state with business-friendly laws that help companies shield assets from creditors and conceal the identities of corporate officers. (NOTE Delaware has been designated the top secret dirty finances haven---more secret than a Swiss bank. All you have to do is register phony companies w/ the Secy of State in Dover.)

Federal investigators are scrutinizing Rothstein's sale of legal settlements at a discount through a tool known as "structured settlements." Rothstein is accused of asking investors to front reduced payouts to plaintiffs and then collect the difference from the full payout later. Authorities suspect the lawsuits were fiction, and investors are preparing to sue him.

The life of the high-profile lawyer who donated lavishly to charitable causes and politicians, including Gov. Charlie Crist, began to unravel in late October, when investors did not receive expected payouts and contacted federal officials. But for months the IRS had been looking at Rothstein's investment empire...... including offshore bank accounts. By then, Rothstein had taken off for Morocco, only to cut short his trip to face the federal investigation.

SOURCE Miami Herald staff writers Amy Sherman, Jay Weaver and Scott Hiaasen reporting. http://www.palmbeachpost.com/news/state/federal-agents-search-lawyer-rothstein-s-estate-seize-46691.html?Palm+Beach+Post+Story+on+Rothstein+with+phot+showing+seizure+of+Ferrari=

==========================================

REFERENCE---THE MADOFF MO:

Madoff was running multiple scams with the knowledge and consent of wealthy businessman:

(1) a Ponzi fraud that made him personally wealthy;

(2) laundering tax-free money for wealthy businessmen with "foundations and charities" posing as philanthropists,

(3) IRS fraud facilitation for wealthy businessmen;

(4) a protection racket (shielding his investors from federal scrutiny);

(5) laundering tax-free money that was donated to Democrat candidates (campaign fraud).

The court appointed trustee looking into Madoff's assets unearthed a labyrinth of interrelated international funds, institutions and entities of almost unparalleled complexity and breadth...... with assets and businesses in 11 places overseas. Madoff traveled overseas frequently, ostensibly to his villa on the Riviera----the suitcases he carried were probably full of cash .....not leisure wear.

[CutePuppy]

Rothstein: "I Kept Spending Like It Was Really My Money"

Fraud and spending... After all, what's the point of stealing if you can't spend it all and then some? He probably learned that from all levels of the government - federal, state and muni... Stop me before I steal and spend again.

But they are also examining allegations of theft from his law firm and client trust accounts. Others said to be under scrutiny...: Rothstein's legal adviser, David Boden; and his uncle, Bill Brock

Just a nice "family" business...

Not very good news for turncoat Charlie Crist, who was tight with Rothsteins and Florida GOP ex-chair Jim Greer.
Corruption scandals are shaking up Florida Senate campaign - TH, 2010 June 05, by J. Taylor Rushing.

A string of corruption scandals in Florida could harm the three Senate candidates.

Wednesday’s arrest of Florida’s former state Republican Party chairman is the latest incident that could tip the scales in the state’s three-way race for the Senate.

A longtime friend and ally of Gov. Charlie Crist, former state GOP chairman Jim Greer was arrested at his Oviedo home on six felony charges connected to a money-laundering scheme during his four-year stint as chairman.

Given Greer’s closeness with Crist, some believe the case is more likely to hurt Crist than former state House Speaker Marco Rubio, the anointed GOP candidate. Crist has left the GOP and is running for the seat as an independent.

Rubio, however, faces a reported IRS investigation into charges he used a state GOP credit card for personal expenses. Possibly also damaging, Rubio led the state House of Representatives at the same time that his Appropriations Committee chairman, former state Rep. Ray Sansom (R), is alleged to have engaged in an illegal appropriations scheme with a Northwest Florida college. Sansom later stepped down as House speaker and faces third-degree felony conspiracy charges in a trial that could prove embarrassing for Rubio.

Rep. Kendrick Meek, the Democratic nominee, isn't free from scandal, either: The congressman pushed for millions of dollars for a developer who faces criminal charges for fraud, and that developer, Dennis Stackhouse, hired Meek's mother as a consultant and helped Meek's chief of staff buy a home.

Meek twice pursued congressional earmarks to fund Stackhouse's project to build a biopharmaceutical complex in blighted Liberty City, but he has claimed that the effort was about bringing jobs to the area and not political payback. .....

And now DNC [unofficially] gave up on Meeks, and is now indirectly supporting Crist as their best bet in the elections:
Dem strategists turning to Crist in Florida Senate race - NYP, 2010 June 04, by Charles Hurt

Top Democratic strategists are abandoning their party's frontrunner in the Florida Senate race in favor of Independent Charlie Crist, who bolted the Republican party over the state party's rightward lurch toward the Tea Party.

SKDKnickerbocker, a leading Democratic political strategy and communications firm, has agreed to work on Crist's up-hill campaign as an independent for the U.S. Senate.

The decision will be widely viewed as a slap at Democratic frontrunner Rep. Kendrick Meek, who is trailing badly in the polls and many Democrats believe is hopeless for winning in November.

Making it all the more ominous for Meek is that SKDKnickerbocker is helmed by Anita Dunn, who most recently served as senior advisor to President Obama and is one of the administration's most valued political operators outside the White House. .....

Crist hires another Democrat for Senate campaign - TH, 2010 June 05, by Jordan Fabian

Florida Gov. Charlie Crist -- a former Republican -- has hired another Democrat to work on his independent Senate campaign.

Crist brought Josh Isay aboard his campaign to work in his communications shop, according to the USA Today. Isay formerly worked for one of the top Democrats in the Senate, Charles Schumer (N.Y.) ..... Crist hired Eric Johnson, a former staffer for ex-Rep. Robert Wexler (D-Fla.), to serve as his political director late last month. .....