This is from this fraud's website "While every effort is always made to ensure 100% accuracy and reliability of these materials, there can be no 100% guarantee. In the rare event that any item is deemed to be incomplete, inaccurate or misleading it will be immediately removed from the site along with a detailed explanation of why"
Hmmmm, anyone think he hit the trifecta on this one? incomplete, inaccurate AND misleading. This #$%$ needs to be exposed and his pathetic excuse for a business run into the ground.
does anybody know if this is our Little Richard hard at work with ponzi artists?
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Rothstein business manager testifies he had no idea investments were a fraud
April 29, 2010|By Peter Franceschina, Sun Sentinel
Scott Rothstein's business manager gave a sometimes tearful account of his time in the Ponzi schemer's world, providing an insider's view during a lengthy deposition Thursday.
David Boden, who eventually rose to be the $500,000-a-year general counsel of the now-bankrupt Rothstein Rosenfeldt Adler law firm, said Rothstein deceived him and spun lies until the very end. Boden choked up several times, particularly when he described his discovery that law firm trust accounts that should have held hundreds of millions of dollars had been plundered.
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It was Friday, Oct. 30, three days after Rothstein had secretly fled to Morocco on a chartered jet. Boden returned from lunch and was told the firm's accounts at TD Bank had been frozen and that someone from the Broward Sheriff's Office had called to say Rothstein had fled the country, Boden testified under oath during the daylong bankruptcy deposition.
Those were the first signs, Boden said, that something was terribly wrong. Boden, along with firm attorneys Stuart Rosenfeldt and Grant Smith, confronted the firm's chief financial officer, Irene Stay.
"There was supposed to be hundreds of millions in those accounts, and I wanted to know if there were hundreds of millions in the accounts," said Boden, adding Stay refused to let anyone access the accounts. "She started to shake her head no, and then ran out of the room crying."
The lawyers got TD Bank executives to send over the account information, even as investors were calling the firm to complain about missed payments from Rothstein.
"I was in shock," said Boden, who then met with firm attorney Marc Nurik. "I said, ‘We have a major problem on our hands.' I started to explain to Marc what I had discovered. Marc got a text [message] from Scott. He wanted him to call him."
After Nurik spoke to Rothstein behind closed doors, Nurik told Boden he was going to represent Rothstein as his criminal defense attorney. Boden protested, but Nurik responded, "The firm's over. I need to help my friend. I can't turn my back on him," according to Boden's account.
"It was obvious a major fraud had been committed," Boden recalled.
Boden said he met Rothstein when the flamboyant attorney was recommended to handle a lawsuit filed by the management firm where Boden worked. He said Rothstein wooed him away from the management firm in the spring of 2008 with a promise to give him part of the business deals he generated, plus a $300,000 a year salary. Rothstein eventually made Boden, then an attorney only licensed in New York, the general counsel of the law firm and gave him a $200,000 a year raise.
He said Rothstein explained his wealth as emanating from the business deals he was doing with hedge funds and wealthy businessman like George Levin, the Fort Lauderdale investor who funneled $775 million into Rothstein's fraud scheme. By all outward appearances, Rothstein seemed legitimate with a good reputation in social, charitable and political circles, Boden testified.
"He appeared to be a very successful entrepreneur in town," Boden said.
Rothstein had interests in a vodka company, a European cruise line, the Bova restaurant group, a computer software firm and dozens of other businesses and investments.
Boden said he didn't know Rothstein was selling legal settlements to investors until March 2009. After that, Boden said he worked on approximately 35 investment deals that were brokered by Richard Pearson of R.L. Pearson and Associates, which had an office in the same building as Rothstein's law firm. He said Rothstein gave him permission to monitor those deals for Pearson and to receive a commission on them.