Rothstein Roundup: Accused Fraudster Meets With Feds And Estimates Of Scheme’s Size Soar

Scott Rothstein
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Back in south Florida after a trip to Morocco, the high-profile attorney who has been sued for allegedly operating a fraud scheme out of his law office met with federal prosecutors last night and criminal charges are likely to come soon, the Broward-Palm Beach New Times reports.

In a suit filed Monday, the law firm of politically-connected Fort Lauderdale attorney Scott Rothstein [alleged](http://tpmmuckraker.talkingpointsmemo.com/2009/11/prominent_politically_connected_florida_attorney_accused_rothstein_in_fraud_scheme.php) that he set up a side business that sold phony legal settlements to outside investors with promises of guaranteed high returns.

There have been a flurry of developments in the Rothstein case in the last 24 hours, so we rounded up a few articles worth taking a look at:

* Stuart Rosenfeldt, co-founder of the firm Rothstein, Rosenfeldt and Adler, says trust accounts set up by Rothstein that contained about $500 million two weeks ago are now empty. Bloomberg [has the details](http://www.bloomberg.com/apps/news?pid=20601103&sid=a5Mbj3u.X3AM). The size of the alleged fraud was [put](http://tpmmuckraker.talkingpointsmemo.com/2009/11/prominent_politically_connected_florida_attorney_accused_rothstein_in_fraud_scheme.php) by one investor Monday at $100 million.

* Late last week Rothstein sent a frantic mass text message to his firm’s partners in which he seemed to be contemplating suicide. “I am a fool. … Please take care of yourselves and please protect Kimmie (Rothstein’s wife). … I hope God allows me to see you on the other side. Love, Scott.” The *South Florida Sun Sentinel* [has the full text](http://www.sun-sentinel.com/news/broward/fort-lauderdale/sfl-rothstein-law-firm-b110109,0,4262229.story).

* The US Senate campaign of Florida Governor — and Rothstein friend — Charlie Crist says it will give back the $9,600 in personal donations from Rothstein and his wife. The *New York Times* [has that and more](http://www.nytimes.com/2009/11/04/us/04lawyer.html) on the Rothsteins’ considerable largesse.

* Venture capitalist Doug Van Allmen, who invested a substantial sum with Rothstein, wonders in an [interview](http://blogs.browardpalmbeach.com/pulp/2009/11/rothstein_investor_doug_von_allmen.php) with the Broward-Palm Beach New Times how he allowed himself to be taken advantage of.

* An investor who was solicited by a broker working for Rothstein [tells Bloomberg](http://www.bloomberg.com/apps/news?pid=20601103&sid=a5Mbj3u.X3AM) that the attorney’s office had pictures of Rothstein with Gov. Arnold Schwarzenegger, a lizard-skin couch, and a bank of televisions. And Rothstein himself wore a pistol strapped to his ankle.

* A Broward judge [has put](http://cbs4.com/local/Prominent.Fla.lawyer.2.1291354.html) Rothstein’s firm in receivership, granting a request by the firm, and forensic accountants will examine the books.

We’ll have more on the political angle later today, so stay tuned.

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