The South Florida Business Journal reported on Monday, November 23, 2009 that former Chairman Scott Rothstein of Broward County’s RRA law firm was using money from his alleged Ponzi scheme – $10 million in one year – to fund his payroll, according to the allegations laid out in an amended federal warrant request filed Monday by the acting U.S. attorney for the Southern District of Florida. This is in addition to the substantial charitable contributions to local charities including hospitals.
Charitable and campaign donations given through the Rothstein Family Foundation, including $800,000 to Joe DiMaggio Children’s Hospital, $1 million to Holy Cross Hospital, and $90,000 to the Republican Party of Florida, which was already turned over to the U.S. government.
These recipients of Rothstein’s largess, mostly in Fort Lauderdale and Broward County may be exposed to and subject to The Bankruptcy Trustee’s power to recover and recapture payments made that can be traced as proceeds from the ill gotten funds. Various theories of law may be applied to achieve this result similar to those being considered in the Madoff case. Please related article in The South Florida Business Journal.
Tags: Boca Raton Bankruptcy Attorney, Broward County Attorney, Chapter 11 Bankruptcy, Ft. Lauderdale Bankruptcy, Holy Cross Hospital, Palm Beach County Attorney, Ponzi Schemes, Scott Rothstein, Sidney Turner
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