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Rothstein Cooperates With Investigators

Attorney Accused Of Stealing Millions

POSTED: Wednesday, November 4, 2009
UPDATED: 4:14 am EST November 5, 2009

A day after returning to South Florida, where he is accused of running a multimillion-dollar Ponzi scheme, high-profile lawyer Scott Rothstein is cooperating with authorities.

Authorities confirmed Rothstein arrived in South Florida at Fort Lauderdale Executive airport Tuesday afternoon.

Rothstein was not at his waterfront mansion Wednesday. Security personnel there said Tuesday that he and his wife were at an undisclosed location.

Federal authorities have interviewed Rothstein, according to reports, but so far, he isn’t facing any criminal charges, Local 10's Todd Tongen reported. Federal investigators have remained tight-lipped about the allegations.

Local 10 inquired about U.S. Attorney's Office's involvement with the Rothstein case, and received this written response from Alicia Valle, a U.S. attorney spokeswoman:

"Sorry, but we neither confirm nor deny the existence of any investigation. No other comment at this time. Thanks for checking," Valle wrote.

On Tuesday afternoon, after reports that Rothstein had landed back in South Florida, his partner, Stuart Rosenfeldt, called police to secure the building at the law firm's posh offices on Las Olas Boulevard.

"Better safe than sorry," Rosenfeldt said. "People sometimes reach conclusions and they have fears. I just didn't see any reason for them to be unnecessarily fearful."

A few miles away, plain-clothed bodyguards stood watch at Rothstein's Fort Lauderdale home.

In court, a judge ordered that Rothstein no longer controlled the firm. Rosenfeldt is now in charge, while a third party will act as receiver.

"Because Mr. Rothstein has twice been given notice of a hearing this significant affecting a law firm that bears his name, in which he is 50 percent owner, and has twice chosen not to appear," said presiding Judge Jeffrey Streitfeld.

A receiver, according to Broward Bar Association president Carlos Llorente, is essentially equivalent to a trustee when a company goes bankrupt. Llorente told Local 10's Janine Stanwood that the legal system has mechanisms in place to protect the legal clients the firm represents.

"The client is looked after. If not by the firm attorneys, but by attorneys appointed by the courts -- by the bar," he said.

Llorente said he knows Rothstein, and that allegations he ran a Ponzi scheme are damaging not only to Rothstein but also to the attorneys with whom he worked.

"It's an allegation against one particular individual. It does not in any way reflect other attorneys in the firm," he said.

The firm has only $500,000 of reserves and will likely not survive Rothstein’s alleged fraud, Tongen reported.

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