This high flier not only got his wings clipped, he’s going to become a jailbird. (Lame…I know). Scott Rothstein is a former Florida lawyer who used his 70 member law firm as a criminal enterprise. He sold participations to investors in stakes in lawsuits he was handling. His scheme netted him millions of dollars. Turns out the lawsuits were largely non existent and it was a giant Ponzi scheme. He promised investors that they would be paid when these lawuits settled.
There were red flags everywhere including a lavish lifestyle, promises of too-good-to-be-true returns, and a charismatic personality. These textbook warning signs are the same characteristics that helped him perpetrate his scheme.
He plead guilty yesterday to wire fraud and conspiracy charges. He faces up to 100 years in prison. That’s him in the picture. Need a watch?