South Florida Ponzi king Scott Rothstein places himself at the mercy of the court Wednesday, when he will be sentenced by U.S. District Judge James I. Cohn.
Hoping to reduce a term that could run up to 100 years, Rothstein has cooperated with federal authorities -- even wearing a wire -- over the past five months.
The 47-year-old Fort Lauderdale attorney handed the government "a 'play by play' description of all of the intricate details of his crimes, as well as the crimes of others," Rothstein attorney Marc Nurik stated in a letter to the judge.
In March, federal authorities arrested a suspected Italian Mafia member living in Miami Beach after Rothstein wore a wire to set up the case.
In a separate letter to Judge Cohn, Rothstein admitted he lost his "moral compass" in building his law firm. Along the way, he spent millions of dollars on political campaigns, funneling hefty contributions to Republican and Democratic parties alike.
Rothstein pleaded guilty to multiple counts of fraud and racketeering last January.
Rothstein's biggest play -- and the one that brought him down -- was a Ponzi-style scheme that bilked Florida investors out of $1.2 billion. The proceeds from that scam helped to bankroll his political contributions and connections.
While attorney Nurik is asking for a reduced sentence of 30 years, prosecutors are pushing for at least 40 years.
"(Rothstein) has brought shame on the legal profession," prosecutor Lawrence LaVecchio wrote to the court. "He has caused the collapse of a (70-attorney) law firm ... His actions have adversely affected legitimate charitable organizations.
"In perpetrating his scheme, he even had the audacity to forge the signatures of three different members of the federal judiciary on bogus court orders."
Last week, a U.S. Treasury Department auction of Rothstein's pricey fleet of yachts and luxury automobiles netted nearly $5.8 million to partially reimburse victims of Rothstein's financial schemes.
The largest outstanding claim comes from the trustee for Rothstein's bankrupt law firm, Rothstein Rosenfeldt and Adler, which says that more than $469 million is being sought by creditors and former investors.
Rothstein's $600,000 in contributions to the Republican Party of Florida apparently paid dividends when Gov. Charlie Crist appointed him to the Judicial Nominating Commission in Broward County.
Rothstein maintained a close association with Crist, donating $52,000 for the governor's 52nd birthday party, and helping Crist cut the cake adorned with the lawyer's name. The cake was a special gift to the governor from Rothstein and his wife.
Last month, Sunshine State News reported that Shane Strum, then Crist's deputy chief of staff, took a courtesy ride aboard Rothstein's private jet to the 2008 GOP convention in Minneapolis. The RPOF -- operating under Crist's hand-picked chairman, Jim Greer -- listed it as a $2,000 "in-kind" contribution valued at $2,000.
Crist has returned $76,250 in political contributions from Rothstein, though investigations continue into Rothstein's multifarious financial dealings in three other federal districts across Florida.
Charles Zelden, a professor at Nova Southeastern University in Fort Lauderdale and an expert on judicial politics in Florida, was recently quoted as saying Rothstein could "create a real mess" in the state's public arena.
In return for Rothstein's guilty plea, prosecutors almost certainly expect him "to name names," said Zelden, including "politicians who may have been playing any kind of quid pro quo shenanigans with him."
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Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.
