Disgraced Florida Attorney Pleads Not Guilty in Ponzi Scheme Charges

Fort Lauderdale, FL (AHN) – Disbarred and disgraced Florida attorney Scott Rothstein was arrested and charged on Tuesday for running a $1.2 billion dollar Ponzi scheme. Reportedly he used his law firm Rothstein Rosenfeldt Adler PA to bilk investors while portraying himself as a philanthropic tycoon.

Rothstein, 47, who fled to Morocco in October pleaded not guilty in a Ft. Lauderdale courtroom on Tuesday wearing blue jeans, a black shirt and handcuffs. If he is found guilty he could face up to 100 years in prison. Authorities are charging Rothstein with RICO conspiracy, money-laundering conspiracy, mail fraud and two counts of wire fraud.

The prosecuting attorney said Rothstein would use money from new investors to pay older ones, which is a classic Ponzi scheme. He’d also sell investors fake legal settlements and told them they cold purchase future claims in sexual harassment and whistle blower settlements at discounts and be repaid at full price.

U.S. District Attorney Paul Schwarz went on to say that Rothstein would forge judges signatures and faked court documents to further perpetuate his scam.

U.S. Magistrate Judge Robin Rosenbaum ordered that Rothstein, 47, be held pending trial at the government’s request, citing a risk of flight. In October Rothstein fled the country, chartered a jet to Morocco with more than $400,000 in cash and wiring $16 million to himself.

In the wake of the scandal numerous politicians have returned campaign donations and the once high-flying firm Rothstein co founded is now defunct.

Authorities are now going after 21 homes Rothstein owned, a luxury yacht, and his other business interests; including his share of a Miami Beach mansion once owned by fashion designer Gianni Versace.