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His progress is easy to see. The department suspended all work for Rothstein on November 2, He was to take ownership of a "series of office buildings" on Oakland Park Boulevard.
According to Stone, that business never generated any clients. It was dissolved in late On August 27, , Stone, the recipient of Rothstein's sponsorship of his blog until July 29, , "StoneZone", wrote a column recommending Rothstein for the seat vacated by Senator Mel Martinez - a man with "a distinguished legal record, has been a key supporter of Governor Crist and John McCain, has an unmatched record of philanthropic activities and would bring an unconventional style of getting things done to Washington.
Add Rothstein to the short list. He could not read a balance sheet. He could not write or read a business plan.
Rothstein was a lawyer, not an entrepreneur. My family said that the higher you get on the poll, the more people see your ass. You better be sure your ass is clean.
My ass is clean. He "appeared to be something out of a Great Gatsby movie. Nobody can really be surprised by this spectacular fall — the question wasn't whether it would happen, but when.
How Rothstein was able to generate this kind of money practicing law seemed impossible. On October 31, his firm sponsored at a charity golf tournament featuring former Gov.
Jeb Bush. Politicians of both parties have pledged to donate to charity or return his political contributions. Debra Villegas, who handles his money, is the law firm's chief operating officer.
She is co-owner with Rothstein in a home at Castilla Isle, as of May Villegas received two Swiss watches — a Rolex and a Breitling — from her "employer".
Rothstein paid off her couch and a bedroom set and held title to her two Honda water scooters. In November , Federal prosecutors seized the home, alleging that it was among Rothstein's ill-gotten assets.
Villegas' estranged husband, Tony Villegas, was charged on circumstantial evidence in the March murder in Plantation, Florida of Melissa Britt Lewis, a partner in Rothstein's firm.
Although early news reports wondered at whether the evidence was substantial, according to New Times, "Nine days later, forensic testing revealed that Tony's DNA had been found on Melissa's suit jacket — the same jacket she wore on the day she died.
Police sealed the arrest affidavit. The prosecutor who had first worked on the Villegas case, Howard Scheinberg, went to work for Rosenfeldt Rothstein Adler.
Villegas, a train conductor, remains in jail awaiting trial. The motive was supposedly revenge for Lewis's closeness with Debra.
You get anger from people They say I'm building the law firm too fast, that it must be a house of cards. Rothstein's investment scheme involved purchasing what were initially mislabeled as fabricated "structured settlements," described as where people sell large settlements in legal cases for lump sums of cash.
Rothstein's resemble investments in pre-settlement funding  or pre-settlement financing. In his December 12, deposition page 24 lines , Scott Rothstein himself said "It was intentionally made in a way and presented to that firm and the other firms that were looking at the structure issue that it was merely a purchase of dollars already in-house; that it was not a structured settlement because the true definition of a structured settlement is when someone is actually receiving payments over time that has some other value.
We didn't have a true definition of a structured settlement, not by any of the statutes. From that perspective we had reason to make sure that this was not structured.
Because when you're dealing with structured settlements you need other levels of Court approval. It would have required the manufacturer of literally hundreds of phony orders, which would have led the entire scheme to detection.
The FBI estimates the loss to be up to a billion dollars from lucrative whistle-blower and employment discrimination cases.
General counsel David Boden was present for at least one of the swindles, and negotiated the final papers with the investors' lawyers.
Rothstein greets and informs the investor his firm was the preeminent sexual harassment law firm in the country. The key was confidentiality.
Rothstein tells the investor that he would meet potential defendants in his office and would question them about affairs they had with an employee. The defendants would deny it.
He pointed to artwork, and said there was a television screen behind it. He tells the investor he turned on a video of the guy having sex with his mistress, and told his client "We can either settle this now, or I can depose your wife, your mistress, you and your son about it.
Why would they sue? Although it did not appear completely legitimate, and it might have appeared that the plaintiffs were short-changed, it makes sense to the potential investor.
The idea seems solid. The investor thinks that with enough of these cases at Rothstein's law firm, he could make huge sums of money.
Several inside whistleblowers went to the fed with unlawful practices regarding the marketing and sales of an anti-psychotic medication called Zyprexa.
It was one of the largest qui tam cases in history. He tells the investor about a potential allegedly fabricated case where investors would buy whistle-blower million dollar settlements with a sixty percent short term investor profit.
The arrangement would be completely secret; the investor would never know the name of the company or the whistle-blower. The settlement money would be deposited into a trust account at TD Bank, accessible only to the investor at the appropriate time.
Katcher went on, "Thus, on the official record and on the basis of [State Attorney Maclay] Hoyne's statement, Rothstein was never involved in the fixing of the Series.
Also, on the official record, it was never proved that the Series had been fixed. Despite all his denials, though, Katcher noted that "while Rothstein won the Series, he won a small sum.
It could have been much — very much — more. It wasn't because Rothstein chickened [ sic ] out. A World Series fix was too good to be true — even if it was true.
Under the pseudonym "Redstone Stable", Rothstein owned a racehorse named Sporting Blood, which won the Travers Stakes under suspicious circumstances.
Rothstein allegedly conspired with a leading trainer, Sam Hildreth , to drive up the odds on Sporting Blood. Hildreth entered an outstanding three-year-old, Grey Lag , on the morning of the race, causing the odds on Sporting Blood, to rise to 3—1.
Just before post time and without explanation, Hildreth scratched Grey Lag from the starting list. With the advent of Prohibition , Rothstein saw the opportunities for business; he diversified into bootlegging and narcotics.
Rothstein also purchased holdings in a number of speakeasies. Later he became the first to illegally import Scotch whiskey in his own fleet of trans-Atlantic freighters.
He knew high end booze would be the "chic thing to have. With his banking support, and high-level political connections, Rothstein soon managed to end-run Tammany Hall to the street gangs.
Subsequently, his criminal organization included such underworld notables as Meyer Lansky , Jack "Legs" Diamond , Charles "Lucky" Luciano , and Dutch Schultz , whose combined gangs and double-dealing with their own respective bosses subverted the entire late 19th century form of political gangsterism.
Rothstein's various nicknames were Mr. Rothstein frequently mediated disputes among the New York gangs and reportedly charged a hefty fee for his services.
His favorite "office" was Lindy's , at Broadway and 49th Street in Manhattan. He often stood on the corner surrounded by his bodyguards and did business on the street.
Rothstein made bets and collected debts from those who had lost the previous day. Many historians credit him as the first successful modern drug dealer.
By , Rothstein was one of the most powerful criminals in the country, and had forged a large criminal empire.
For a time he was the largest bootlegger in the nation, until the rise of George Remus. He claimed the game was fixed and refused to pay.
The murder was intended to punish Rothstein for failing to pay his debt. Roosevelt for Governor. Thompson testified at McManus' trial, describing him as "a swell loser" who would never have shot Rothstein.
In his book Kill the Dutchman! On his deathbed, Rothstein refused to identify his killer, answering police inquiries with "You stick to your trade.
I'll stick to mine",  and "Me mudder my mother did it. At his death, Prohibition was in full swing, various street gangs were battling for control of the liquor distribution and the carefully constructed political boss structure of the late 19th century was in total collapse.
Frank Erickson , Meyer Lansky , Bugsy Siegel and other former associates split up Rothstein's various "enterprises" after his death. With Rothstein's death, the corrupt and already-weakened Tammany Hall was critically wounded because it had relied on Rothstein to control the street gangs.
Ten years after his death, Harry Rothstein, Arnold's brother, declared Rothstein's estate insolvent and Arnold's wealth disappeared.