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Herbert Stettin, the bankruptcy trustee appointed to
recover assets for the benefit of victims defrauded by Scott Rothstein's $1.4
billion Ponzi scheme, filed
several more clawback suits seeking the return of funds spent by Rothstein
on expensive jewelry and exotic automobiles. The clawback suits, known in
bankruptcy parlance as preference actions, seek the return of funds transferred
from Rothstein prior to the filing of the petition putting Rothstein's law
firm, Rothstein Rosenfeldt Adler, P.A. ("RRA") into bankruptcy.
Stettin is proceeding under the Florida Uniform
Fraudulent Transfer Act ("FUFTA") and the Bankruptcy Code, which
allow avoidance of preferential transfers made with actual intent to defraud or
that were constructively fraudulent and thus made without reasonably equivalent
value. While bankruptcy laws provide for the avoidance of these transfers
within two years of the bankruptcy petition filing date, its FUFTA counterparts
extend this "lookback" period to four years from the filing date.
The latest round of clawbacks seek over $10 million from the following
The majority of funds sought relate to Rothstein's
affinity for expensive jewelry and cars. Stettin is seeking the return of
nearly $10 million from Levinson Jewelers, whose owners were allegedly close
friends with Rothstein.Stettin is also seeking the return of funds from Braman
Motors used to purchase a 2009 Bugatti Veyron, which was sold at auction last
year for nearly $900,000.
Rothstein is currently serving a 50-year sentence in
The suits filed by Stettin can be found here.
more news and analysis of Ponzi schemes,
visit Ponzitracker, a blog by Jordan Maglich, an attorney at Wiand Guerra King P.L.
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