Scott Rothstein's wife, Kim, reaches deal in bankruptcy case

Sun-Sentinel ^ | May 10, 2011 | Jon Burstein

[TheDingoAteMyBaby]

The wife of Scott Rothstein will give up much of the couple's belongings in a deal she cut with the attorneys cleaning up her husband's $1.4 billion Ponzi scheme.

Kim Rothstein will keep some clothing and household items, but is relinquishing her rights to almost all of the high-end purchases taken out of their homes in Florida, New York City and Rhode Island, according to court records filed Tuesday afternoon.

Gone are the Zola Keller designer dresses, the pairs of Jimmy Choo and Christian Louboutin shoes, and much of the couple's 240-bottle wine collection. She kept a pair of Coach sunglasses out of the 22 pairs of designer sunglasses found in her bedroom closet, according to court records.

"She's turning over the bulk of the estates," said her attorney, Michael Seese. "I think she is looking forward to getting on with her life and putting this behind her."

There has been no dollar amount attached to all the items she relinquished.

Attorneys handling the bankruptcy of Scott Rothstein's law firm, Rothstein Rosenfeldt Adler, filed a lawsuit against her in March 2010, claiming she owed $1.1 million to victims of her husband's financial fraud.

The bankruptcy attorneys discovered, though, that after the federal government finished its seizure of Scott Rothstein's homes, cars and business holdings, his wife had no money to take.

"We got everything we thought we could get from her," said Charles Lichtman, an attorney for bankruptcy trustee Herbert Stettin.

In addition to property from the couple's homes, Kim Rothstein turned over a 2008 Ford Expedition, a ruby and diamond heart ring, and $108,000 in a retirement fund set up for her by her husband's law firm.

[Minn]

Those sunglasses will go a a long way toward making the victims whole. And all the used clothing too.

[1010RD]

I’ve been waiting to find a bargain on a 2008 Ford Expedition.

Do you know when it will be auctioned or is it already sold to the brother-in-law of the trustee?

[TheDingoAteMyBaby]

I’m not sure.

[coloradan]

So, do the feds keep the loot or will they compensate the victims?

[Montanabound]

A couple of relatives by marriage lost everything in
Rothstein’s Ponzi scheme. They are huge libs who were set
for life with their inheritances, but they got greedy.

[TheDingoAteMyBaby]

Last year, a judge ordered Mr. Rothstein to pay $363 million in restitution to his victims. There were public auctions of his cars and yachts. I’m guessing the same will happen to Kim’s property.

[CT Little Tiger]

All of that money, and her retirement fund was only $108,000?

[org.whodat]

Another fund with no money in it, you pay a percentage, the fund is reimbursed a little after the feds steal what they want. However in this case, against this women, that was separate from the government, the attorney gets the money, the people get green stamps.