Projo 7 to 7 News Blog

Associated Press Photo / South Florida Sun-Sentinel, Walter Michot
FBI agents watch over a 2006 Ferrari Spider convertible, owned by Scott Rothstein, as it is readied for towing Monday in Fort Lauderdale, Fla. Federal agents were at the ritzy Fort Lauderdale home of Rothstein, a lawyer suspected of orchestrating a multimillion-dollar fraud scheme, seizing assets on Monday.

By Tom Mooney
Journal Staff Writer

NARRAGANSETT, R.I. -- A prominent Florida lawyer and political donor now at the center of a multi-million-dollar fraud investigation transferred ownership late last month of two Narragansett houses he owned -- valued at $4.5 million -- to a limited liability corporation, town records show.

Scott W. Rothstein, 47, of Fort Lauderdale owned the two houses on Bluff Hill Cove Farm Road, overlooking the eastern shore of Point Judith Pond. Real estate records show he purchased both properties from nightclub owner Michael C. Kent; one in 2006 for $2.8 million and the other in July 2008 for the same price.

But as Rothstein's high-profile lifestyle began to unravel and federal authorities were scouring through records of his investments and offshore bank accounts, Rothstein, on Oct. 20, filed a quit-claim deed in Narragansett Town Hall turning over ownership of the property, without any exchange of money, to a limited liability corporation based in Delaware called ``NRI 15''.

Rothstein took the same step with several Florida properties he owned, turning them over to Delaware companies, reported The South Florida Sun-Sentinel.

While no criminal charges have been filed, Rothstein's investors accuse him of misappropriating $100 million or more through investments in legal settlements that his law firm allegedly handled. Late last month when some of those investors failed to receive their scheduled payments they started calling authorities.

Rothstein is a major player in South Florida business, politics and philanthropy. He has hosted fundraisers for former President George W. Bush, Florida Gov. Charlie Crist, 2008 Republican presidential nominee John McCain, California Gov. Arnold Schwarzenegger and others. Rothstein also has contributed to numerous charities, including a foundation for children and youth run by former Miami Dolphins star Dan Marino and former Miami Heat star Alonzo Mourning.

On Monday Rothstein's law partner, Stuart Rosenfeldt, who founded the firm Rothstein Rosenfeldt Adler in 2002, went into court seeking to dissolve their partnership and have the 70-lawyer firm placed into court-supervised receivership "to minimize any further damage caused by Mr. Rothstein."

In court papers, Rosenfeldt said "A review of the firm's records undertaken this past weekend indicates that various funds unrelated to the direct practice of law cannot be accounted for, circumstances suggesting that investor money may have been misused by Mr. Rothstein who controlled all such accounts."

The Sun-Sentinel reported that Rothstein's property also includes a $6.45-million Fort Lauderdale home, and a $6-million condo in New York

Federal agents reportedly began seizing assets of Rothstein's Monday, including a red Ferrari he had bought for his law partner.

With reports from The Associated Press and The Miami Herald.

This story was posted, without the photo, at 11:12 a.m. The photo was added at 1:09 p.m.

 Tags  Narragansett RI Scott Rothstein

Comments

Nat said:

And all I drive is a 2004 Chevy Aveo with 90,000 and a cracked windshield. Maybe I should become a crook and get a better car at the expense of others.

Link | November 9, 2009 2:27 PM
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Saly said:

Let me get this straight, a Limited Liability Company gives an individual an Unlimited Ability to Lie? Maybe someday we will find out the name of the evil genius that came up with that one.

Link | November 9, 2009 8:50 PM
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