Scott Rothstein, the disbarred south Florida lawyer accused of running a $1.2 billion Ponzi scheme, has pleaded not guilty to charges of wire fraud and conspiracy.
According to prosecutors, Rothstein’s scheme started in 2005 to finance his 70-person law firm. Investigators believe that he had a number of co-conspirators, who helped to propagate the fraud and lure more unsuspecting investors.
As part of the scheme, Rothstein told investors that they could buy stakes in pending class-action lawsuits and collect money when they were settled. His victims already have sued TD Bank, where Rothstein and his co-conspirators held more than 30 accounts. — jta