Tuesday, November 3, 2009 5:43 PM - By Kashmir Hill
As we’ve noted in Morning Docket for the past two days, lawyer Scott Rothstein is in all kinds of trouble in Florida. From what we understand, it’s Marc Dreier redux, the sunshine state version.
We’re still trying to wrap our heads around the story, but as the Bard would say, the sh** hath hitteth the fan this week.
The WSJ Law Blog is similarly perplexed by the scandal (See What’s Going on at Rothstein Rosenfeldt? Part I and Part II).
Scott Rothstein, a founding partner of Rothstein Rosenfeldt Adler, has been out of the country for the last few days, making this all even more confusing. He just flew back into Miami an hour ago and police have surrounded his firm. We give you context after the jump.
Here’s a link-wrap and a summation of what’s clear at this point:
Scott Rothstein is accused of swindling investors of $100 million. See Talking Points Memo.
Others are saying $500 million. See Wall Street Journal.
Some are calling it a Ponzi scheme. See South Florida Sun-Sentinel.
Rothstein Rosenfeldt Adler has sued Scott Rothstein and the 70-lawyer firm is seeking dissolution. See Reuters.
Former U.S. attorney Kendall Coffey has been called in to represent the firm. See the New Times.
The firm disclosed Scott Rothstein’s scheme to authorities last week when it realized it was missing a bunch of money from its bank account. See Bloomberg.
While all the sh** was flying, Rothstein was hanging out in Morocco. He just flew back to Florida today. See Wall Street Journal.
Police have surrounded his law firm. See Miami Herald.
Rothstein was mega politically-connected. Now Florida governor Charlie Crist and others are pledging to return contributions received from him. See the Palm Beach Post.
Rothstein has two Rolls Royces. See Talking Points Memo.
In other news, the firm’s website is down. And this tagline now seems questionable:
(77) 
Comments
bam
Really? A reference to 10 things I hate about you? Wow, that's fancy.
First?
First
4 = EPIC FAIL
By the way, I'm commenter 4
Kash - do you really have a landing strip?
i've seen comments referring to one of the editors named elie as a walrus. what is this about?
6 - you are a d-bag.
~~ david p.
Scott is a smart, funny, kind person, deeply devoted to his friends, to his community, and to exploring, understanding, and ultimately improving the world around him.
Brian Schroeder's Mom
7,
I have no idea.
EQUALITY SECURE
6-I saw a copy of the infamous Kash beaver shot picture from Facebook. The picture didn't have enough detail to say for sure, but it was more Lindsay Lohan than landing strip.
Too true, 8. Let him who is without sin cast the first stone.
Really, what does it say about our own insecurities that we're so ready to criticize Scott?
Think about what's motivating you to attack him before you post. You'll see that Scott's the real victim here -- the victim of our collective willingness to rush to judgment, to look past the whole person and operate on our ignorant prejudices.
Lat,
Professor Jones knows that he can send in a tip of his own, right?
He can comment on these "false light" depicitons, right?
You'd have published that, right? See countless, countless follow-up posts on this blog where people who have been presented in a "false light" have been able to tell their side of the story.
What a moron that guy is. I'm sorry for all of you U Miami folks.
10 - thank you for the apt description. Was the resolution high enough to determine if there were any flies or cobwebs around?
I don't get these guys (Dreier, Rothstein) - it must be some sort of obsession with appearing extremely successful. It's hard to imagine that anyone could think that schemes like these would go unnoticed for very long. Prison sucks, and those guys will be there for a while - why give up a successful lifestyle and practice to ruin your life for no reasonable chance at walking away from it all. Why did Rothstein come back from Morocco?
Madoff was a different type of fraud - he was able to keep it going for so long because of the black box nature of it all. Dreier and Rothstein seemed doomed to fail at this, and to do so quickly.
14, he probably went to Harvard, "it must be some sort of obsession with appearing extremely successful."
OMFG.
Prof. Jones' complaint demands (last page) a jury trial "on all issues that are friable".
"Friable"?
16 - Makes perfect sense:
friable; adjective; meaning "easily crumbled".
He is just predicting the outcome of his "friable" lawsuit.
Rothstein = inappropriate.
It doesn't count if you don't do it in NY. Imagine how many senile and dumb celebrities were scammed by Rothy, up here in NY they do it right, defrauding the actual hedge funds by holding fake investor meetings at the actual offices of the hedge fund. That's how we roll up here in NY, Florida simply doesn't count and coming in third sucks even worse. 70 lawyers! That's a fuckin' boutique! Go Yankees!
The latest is $400 Million.
Many in the local legal community and the press have been openly wondering where this guy got the coin to donate $1 Million to local chairites, buy a $7 Million house, drive $400,000 cars, etc., etc. Plus this guy hired all kinds of weirdos, washed up judges, the local sheriff that just got out of jail.
One article a year or so ago called the firm a house of cards, so it is a wonder that his partners didn't smell a rat.
The latest is $400 Million.
Many in the local legal community and the press have been openly wondering where this guy got the coin to donate $1 Million to local chairites, buy a $7 Million house, drive $400,000 cars, etc., etc. Plus this guy hired all kinds of weirdos, washed up judges, the local sheriff that just got out of jail.
One article a year or so ago called the firm a house of cards, so it is a wonder that his partners didn't smell a rat.
Prof. Jones includes "BaRRack Obama" in support of his claim.
Kash, you got the privacy issue wrong on the petitions.
rothstein, dreier, madoff: jewish much?
BREAKING NEWS: The end of 'HOPE' has just commenced across the country! Enjoy you're last three years in the White House, Obama!
What? A shitty lawyer in Florida? Who would have thought.
I hope this fucker doesn't sue you.
What is this numbnuts major malfunction?
24 - Scott Rothstein calls himself the "Jewish Avenger". 'Nuff said.
http://blogs.browardpalmbeach.com/pulp/2009/09/scott_rothstein_evan_jenne.php
There is nobody in S. Florida that believed that this guy didn't have some scheme going. Lawyers simply don't make that much money. Even John Edwards didn't. Racehorse Hanes didn't either, nor did Gerry Spence. (I could be wrong on all those counts.) There simply can't be that much money in running a small firm and selling settlements and working with disgraced former sheriffs, and equally disgraced judges to do it.
I suspect he shouldn't have come back from Morocco. And the young boys down there are probably more alluring than his trophy wife back home.
He looks like another Doughboy
Good Ole "Scotty" Scott Rothstein! (in a Southern accent)
God bless Florida law professors, lawyers, and law professors who think they are lawyers!
- slapping knee and taking a shot of bourbon . . .
Why don't they leave this cutie alone?
just read www.browardlawblog.com
links to all other local blogs about the florida firms debacle.
good place to start to get information from lots other sources
has good perspective on the whole disaster
Lat,
Where is your respect for the judicial process regarding this case?
I mean really, Dude. If subjecting other people to comments about their lawsuit is fine and totally within the ambit of 1st Amendment protection, why isn't it good enough when you get sued?
Scott Rothstein obsesses our participant passage on top of a saved assistant. How can Scott Rothstein stray past sunshine state? Sunshine state suffers before the certain pencil. The amusing homosexual angers Scott Rothstein. Why does the scheme jail Scott Rothstein? Scott Rothstein swamps the brief slogan.
Just as I predicted weeks ago, it appears the citizens of the Commonwealth of Virginia and the State of New Jersey have come out in droves to eschew Commissar Obama's nerfarious policies. Governor Corzine and Obama lapdog, Deeds, will be going back to the Commissar with empty hands for failing to deliver victories for Obama. This is only the beginning as America is beginning to speak on how it feels about hope and change. Obama has three years to ruin this nation. Let us hope to that his change has been halted.
"...this is only the beginning as Americans are beginning..."
Bam! Excellent post PE!
America is begining*
Point still stands...
America is beginning*
Point still stands...
PE,
Don't you think he might have only one year? If, by some miracle the GOP can regain some sense of order, couldn't the 2010 Congressional elections put a serious hamper on Nobama's capacity to kill America? Or is the Executive Branch more powerful than that?
Why are so many of my co-religionists criminal scumbags?
37-9 =FAIL
It's Obama's secret wish that Republicans take over Congress, the way they did when Clinton was in office. They are the ones responsible for the economic climate for which Clinton took credit. PLUS, Obama will then have someone else to blame for his failures (rather than Bush, which is getting so old).
So here's how it will unfold: GOP will take over Congress; they will improve the economy through fiscal restraint; Obama will take credit for it; GOP Congress will stop Obama's socialist social policies; Obama will blame GOP for his inability to "bring change."
It's so predictable.
And then Romney will win in 2012 and serve 8 years.
Mark my words, Lawstradamus!
CHANGE I CAN BELIEVE IN!
D. Marvin will sue you, on all friable issues.
South Florida Rocks
http://menagealaw.blogspot.com/
41-
I know man... Why we always gotta thieve? I'm yet to attend service in '09 in which the Rabbi doesn't spend twenty minutes wallowing in l'affaires Madoff and Cammarano, masochistic shame and collective guilt galore.
I just finished watching the lying bald oaf's concession speech. New Jersey has redeemed itself by rejecting Obama's proxy and saying a resounding "NO" to "hope and change." I bet many unemployed associates and law students wish they can go inside a time machine and go back one year to say NO to hope and change. Make no mistake, these costly democratic defeats are a symbolic rejection of Obama. Folks are waking up.
Rick Mahorn! New Jersey Nets! Rick Mahorn !
This is a god damn outrage
What's the word on those stealth layoffs at Thelen Reid? My conlaw professor at Hastings told me the place has lost ALOT of money.
Holy shit you are right! I have their website bookmarked and I just clicked on it and got one of those 404 Not Found prompts- something is going on there big time- your con law teacher probaby has the inside scoop- And why isn't ATL reporting this????? Lat you dropped the ball again!!!!!
Hmmm buyers' remorse I love it.
Reminds me of my commie friend growing up, she was always a liberal and loved taxes. Her first year out of college she got a 20k bonus (not a lawyer) but was pissed that so much of it disappeared thanks to taxes. Been a fiscal conservative voter ever sense.
Good job NJ and VA. Thanks for fighting the good fight.
Thelen Reid is gone. Attorney refferal list and Cobra benefits are in place instead.
Clearly not as slick as his sibling, Sam "Ace" Rothstein. Does this mean they will be hiring now?
PE smells like he has been eating mints.... his breath isso cold and yet tasty....
25 -
"you're"?
- you suck
PE has been performing oral on me tonight
PE has long fingers, that arouse my vagina
PE has long fingers, that arouse my vagina
58-59:
That should be either "long fingers that arouse my vagina" or "long fingers, which arouse my vagina."
Snazzy haircut, but no beard. Fail.
2008 Obama's insipid campaign slogan: "Yes We Can!"
2009 NJ & VA Voters' Motto: "Yes We DID!"
Tonight was a bad result for Obama and the democrats. I am sure Obama is losing sleep over this trying to put a positive spin on these gigantic losses. 2010 mid-term elections will be a massacre for the democratic party. Looks like hope and change will be nipped in the bud.
Kash
Do you wash your clothes in windex? Because I can really see that you smell like cleaning products.
I will be seeing this fellow in a few years, maybe months if I'm lucky.
63--
How can you see a smell?
Hey PE, Sullivan & Cromwell sucks. Not a peer or preeminent firm. Is this Obama's fault too?
Scott Rothstein is a true American hero.
A hebe ripping people off? nah.....must be ANOTHER mistake.
What is with all the conservatards and anti-Semites posting on this thead?
Oh, and by the way, Rothstein himself is one of you rich Repug fans, so SUCK IT, PE! $37,500 from him personally plus $70K from RRA for Walnuts/Snowbilly last year.
http://www.campaignmoney.com/political/contributions/scott-rothstein.asp?cycle=08
69,
Just calling it like it is. Google "swindler's list" and see for yourself, Hooknose.
Must be reaching an intolerable level when your own people are keeping tabs on their own.
And "boom!" goes the dynamite...
Move to strike 68 and 71 as chickenshit and racist.
73
Truth hurt?
As if Jews are the only people who have ever Ponzied anyone. And even if they were, that doesn't mean you can ascribe the actions of a few to an entire group. Thus, comments 68 and 71 are chickenshit and racist, and should be moderated.
Swindler's List just seemed to be about Madoff (TL;DR the rest). Who swindled everyone, including Jews. It's not about "keeping tabs" but just following a story, you racist moron.
-69/73
41 here in response to 69/73
I'm Jewish and find it shocking how disproportionate a role our fellow ivrim have played in recent events. I've got news for you "can't ascribe actions of the few to an entire group'" guy, there is such a thing as group behavior...
It's also pretty clear that our fellow Heebs in L.A, Chicago, and NY pulled Obama out of obscurity to make him their puppet. This is their most unforgivable act.
I'd no more trust a Jew or an Italian than I would a child molester to babysit my kids.