Scott Rothstein, chief executive officer at Rothstein Rosenfeldt Adler, one of South Florida's largest law firms, has been accused of defrauding investors and clients out of millions by misappropriating more than $1 billion through a structured settlement side business. Such sales allow people who have obtained a structured settlement in a dispute resolution to get a quick payout in exchange for signing away the rights to the settlement.
According to background attached to the complaint, "some investors allege that Rothstein may have been fabricating non-existent structured settlements for sale to investors."
Property records show that Rothstein spent more than $15 million on real estate properties in Florida, New York, and Rhode Island. He also owns a fleet of high-priced automobiles. Not surprisingly, Florida's Republican Party, the recipient of many a Rothstein fund-raiser, also announced on Tuesday that it would return those donations.
Criminal charges have yet to be filed.