Feds Visit Rothstein Law Firm; Ex-Judge Is Appointed as Receiver
Federal agents descended tonight on a well-known South Florida law firm that has been much in the news lately after one name partner said another name partner may have misappropriated some $500 million in outside investor funds from a side business.
An FBI spokeswoman said it and the Internal Revenue Service are at Rothstein Rosenfeldt Adler’s Fort Lauderdale offices today on “official business” but declined to elaborate, the Palm Beach Post reports.
At one point, accused partner Scott Rothstein—who is the firm’s managing partner and CEO—was reportedly in Morocco. However, he has returned and met with authorities.
Meanwhile, as requested in litigation filed at the behest of firm president Stuart Rosenfeldt, a Broward Circuit Court judge yesterday appointed a receiver to oversee the situation. Herbert Stettin, a retired Miami-Dade jurist, is expected to provide a preliminary report to the court by the end of the week, according to the newspaper.
Investors are now putting a spotlight on the bank that held their accounts, to see whether there might be any irregularities there, reports the South Florida Sun-Sentinel.
“We’re looking to see how the funds moved, who was involved there and the kind of accounts that were set up,” attorney William Scherer, who represents a group of investors who claim to be owed some $75 million, tells the newspaper.
A TD Bank spokeswoman says it is conducting an internal investigation, as is routinely done in such a situation, and will cooperate fully with authorities.
Attorney Alan Sakowitz of Miami, who met with Rothstein over the summer to discuss potential investment, says he was told by Rothstein that he routinely held $700 million to $900 million at the bank.
“He said he was the only one that had control over it,” Sakowitz tells the Sun-Sentinel.
Additional coverage:
ABAJournal.com: “Agents Seize Ferrari Key, 44 Boxes of Documents in Raid of Lawyer’s Offices”
ABAJournal.com: “Miami Lawyer Says He Pointed Feds to Rothstein in Claimed $500M Scheme”
ABAJournal.com: “Lawyer in Ponzi Probe Returns from Morocco After Hinting of Suicide “
