For our original article on the story, click here. Scott Rothstein, founding partner of the Florida firm Rothstein Rosenfeldt Adler, remains incommunicado after taking off last week. He is believed to be in Morocco, and his attorney has said he would return today. The firm has hired a former US attorney to investigate allegations that Rothstein did something improper with an investment vehicle, and has asked the Florida court to dissolve the firm, putting its assets in the hands of a receiver.
Now we have more details on the alleged misconduct of Rothstein. Rothstein is reported to have set up a side business selling shares in settlements. Investors would buy out structured settlements from clients at a discount and in turn receive payments as the structured settlements resolved over time. The problem is that Rothstein may have been selling shares in fictitious settlements and is alleged to have disappeared with anywhere from $200 to $300 million.
Rothstein has been a major contributor to Republican politics in Florida. Ellyn Bogdanoff, a member of the state legislature who was the biggest benefactor of Rothstein’s donations, said today that she would be returning any political donations from Rothstein.
The firm’s website, rra-law.com is currently blank, and the pages linking to Rothstein are now inactive.
UPDATE:
Rothstein is back in Miami and police have surrounded his firm.
Enter your email address and start getting breaking law firm and legal news right now!
BCG JOB OF THE DAY
Sponsored by
Location: Illinois - Chicago
Description:
Chicago office seeks associate with 5+ years of experience to join the General Litigation practice group. "This is a large, prestigious full service firm based in Chicago, with offices in two of the major cities in the East Coast and the Midwest. Its strong suit is handling corporate and finance, litigation, intellectual property, trusts & estates, product liability, real estate, environmental, tax, labor and employment and construction matters. The firm has an interesting ...
Why Try LawCrossing Now?
