Ponzi Record

United States ยท To 2009 (sources reviewed do not give a start year)

Rothstein Rosenfeldt Adler settlement and loan investments

The FBI said investors were told they were buying discounted shares of confidential civil settlements, or lending to borrowers, and that the settlements and borrowers did not exist. It said new investors' money was used to repay earlier investors and that false bank statements and settlement agreements were created to convince investors the funds existed.1

Losses as statedThe FBI said the scheme obtained approximately $1.2 billion from investors.1
Victims as statedNot stated in the sources reviewed.
Recovered for investorsNot confirmed in the sources reviewed.

People and outcomes

Scott W. Rothstein

Pleaded guilty on 27 January 2010 to five counts: RICO conspiracy, money laundering conspiracy, mail and wire fraud conspiracy and two counts of wire fraud. Sentenced on 9 June 2010 by Judge James I. Cohn to 50 years in prison, followed by three years of supervised release, with forfeiture of property.1

Response: Rothstein pleaded guilty to all five counts, according to the FBI.1

Timeline

  1. Rothstein pleads guilty to five counts.1
  2. Rothstein sentenced to 50 years in prison.1

Sources

  1. FBI Miami, Scott Rothstein sentenced to 50 years in prison (9 June 2010)