News Release: Associated Press
July 15, 2014
FORT LAUDERDALE, Fla. (AP) — Federal prosecutors have reached an agreement with a bankruptcy trustee on how to divide nearly $50 million forfeiture proceeds from convicted Ponzi schemer Scott Rothstein.
Miami U.S. Attorney Wifredo Ferrer says about $28 million will go to qualified victims of the scam and $21 million to claimants in the bankruptcy of Rothstein’s now-defunct Fort Lauderdale law firm.
The money comes from forfeiture of real estate, boats, vehicles, jewelry and bank accounts traced to Rothstein’s $1.2 billion scheme. The settlement still must be approved next month by two federal judges.
Rothstein is among roughly two dozen people convicted in the scam, which offered investments in supposedly confidential legal settlements that did not exist. Rothstein himself is serving a 50-year prison sentence.