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=
I’m surprised that Mr. Rothstein is still breathing after reading this information.
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.
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. ..... A string of corruption scandals in Florida could harm the three Senate candidates.
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
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. ..... 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.
Crist hires another Democrat for Senate campaign - TH, 2010 June 05, by Jordan Fabian
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. ..... Florida Gov. Charlie Crist -- a former Republican -- has hired another Democrat to work on his independent Senate campaign.