A $1 billion fraud usually has more than one culprit.
That’s what authorities and victims of Scott Rothstein’s alleged lawsuit settlement Ponzi scheme are assuming, increasing pressure on those around the disgraced south Florida lawyer.
For one, the Florida Bar has opened investigations into four attorneys at Rothstein’s now defunct firm, Rothstein Rosenfeldt Adler, according to the Miami Herald.
That includes Stuart Rosenfeldt, cofounder and co-owner of the firm, who has said he didn’t know anything about the apparent fraud operating out of his own offices.
Apparently horrified lawyers at the firm quickly gave an office tour to reporters after allegations against Rothstein came out, insisting the scheme was their hot-shot collegaue’s alone.
But as Randy Schultz of The Palm Beach Post notes, more questions should have been asked:
Post: What is clear, though, is that before joining the firm few, if any of those “partners” asked themselves questions that I’d heard from curious lawyers in Palm Beach County. How could two men who specialised in labour law — not a top-tier income branch of the profession — create a firm that grew so fast? Who were the clients? Where was all that money coming from? Why was Rothstein living so flamboyantly when Mr. Rosenfeldt wasn’t?
Outside the firm, other potential enablers named in suits include the hedge fund Banyon, which allegedly helped finance Rothstein’s fraudulent settlements; and TD Bank, which was called the fraud’s “financial epicentre.”
Meanwhile, Rothstein is still free, waiting for formal charges. It’s only a matter of time.
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