Bankruptcy plan restores many Fla. Ponzi investors

Bankruptcy plan will restore losses for many investors in Fla. $1.2 billion Ponzi scheme

Associated Press

FORT LAUDERDALE, Fla. (AP) -- A bankruptcy plan approved in the South Florida's $1.2 billion Scott Rothstein Ponzi scheme will likely restore money lost by hundreds of investors.

A federal bankruptcy judge on Thursday approved the liquidation plan for Rothstein's former Fort Lauderdale law firm. Much of the money is coming from TD Bank, which investor attorneys claim played a role in Rothstein's scam.

The bank has denied wrongdoing but is paying about $363 million to Rothstein investors in a variety of judgments and settlements so far. Attorney William Scherer is seeking further financial sanctions against TD Bank over failure to release key documents.

Rothstein is serving a 50-year prison sentence after pleading guilty to operating the scheme, which involved investments in fake legal settlements. The scam imploded in fall 2009.

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