Scott Rothstein, president of Rothstein, Rosenfeldt and Adler (RRA), is accused of stealing ten of millions of dollars, possibly hundreds of millions, by selling phony legal settlements to investors. The FBI searched their offices at 401 E Las Olas Blvd on Tuesday, with permission of the Law Firm. Rothstein has been stripped of his control of the firm by a court.
Rothstein's alleged ponzi scheme may have a rippling effect on Fort Lauderdale. Rothstein was also CEO of the Bova Group which owns Bova Prime, has recently purchased what was the Versace Mansion, and planned on opening a Martini Bar in the location that was previously Jackson's Steakhouse. Rothstein was also a major contributor to many local charities and political campaigns. RRA was also a co-sponsor in Jeb Bush's Golf Benefit beginning today.
The impact on charities and the community may be widespread. Rothstein had pledged $1 million to Holy Cross Hospital. He had sponsored charities with local sports figures Dan Marino, Alonzo Mourning and Dwane Wade. He was a major contributor to political candidates, often contributing to both Democratic and Republican Candidates. An early supporter of Charlie Crist; Crist has already returned all of the money he had received from Rothstein and his firm.
The future of the 150 employees at RRA, as well as the Bova Group, is as uncertain as the Future of Scott Rothstein. Rothstein had fled to Casablanca in Morocco, a country with no extradition treaty with the US, but he returned shortly afterwards to face the charges. He was later charged with RICO consipiricy, money laundering, wire fraud and 2 counts of mail fraud. He's now being detained at Miami's Federal Detention Center.
Scott and Kim Rothstein (from Las Olas Lifestyle Magazine)
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April 26, 2014: Barry Bekkedam, the former Villanova University basketball player who founded the Main Line investment advisory firm Ballamor Capital Management LLC in 1999, and built it into a $2 billion-asset business before giving up its Securities and Exchange Commission registration in 2010, "fraudulently induced, or assisted in inducing, his advisory clients and others to invest approximately $100 million in a fund" run by "now-convicted Ponzi-schemer Scott Rothstein," the Philadelphia office of the SEC alleges in a federal civil lawsuit
Read more at http://www.philly.com/philly/blogs/inq-phillydeals/SEC-sues-Bekkedam-for-.html#MT6HEh1Qx37e6Lz8.99
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