Banks Knew About Illegal Rothstein Transfers and Hence are Liable for $160M, Lawyer Argues
Banks at which then-attorney Scott Rothstein deposited money he obtained via a $1.2 billion Ponzi scheme may not have known about the swindle.
But they did know, or should have known, about illegal transfers from his now-defunct Florida law firm trust account to its operating account and Rothstein’s personal account, a lawyer representing investors argued today in a hearing in the Broward County Circuit Court suit. And hence, says attorney William Scherer, they should be held liable to those the now-imprisoned Rothstein fleeced, reports the Heard Along the Coast blog of the South Florida Business Journal.
The hearing will continue tomorrow, as lawyers for Gibraltar Private Bank & Trust and TD Bank try to persuade Judge Jeffrey Streitfeld to dismiss the suit.
As detailed in earlier ABAJournal.com posts, Rothstein is serving time for persuading individuals to “invest” in fictitious structured settlements, promising them a future income stream from the nonexistent pacts.
Related coverage:
ABAJournal.com (Nov. 2009): “‘Sonic Boom’: Rothstein Churned $250M in Trust Funds Last Month, Lawyer Says”
Heard Along the Coast (South Florida Business Journal): “Rothstein victims fight settlement”
