FORT LAUDERDALE, Fla. - (Mealey's) The trustee for a
bankrupt feeder fund and the trustee of convicted Ponzi schemer Scott W.
Rothstein's law firm have agreed to an amended $65 million settlement with
Gibraltar Private Bank and Trust Co., a bank Rothstein is alleged to have used
in his scam, according to a document the trustees filed Sep. 17 in a Florida
bankruptcy court (In re: Banyon 1030-32 LLC, No. 10-bk-33691,
Chapter 7, S.D. Fla. Bkcy.).
Robert Furr, the Chapter 7 trustee for bankrupt feeder
fund Banyon 1030-32 LLC, and Herbert M. Stettin, the Chapter 11 trustee for the
defunct law firm Rothstein Rosenfeldt Adler, filed a notice of motion to
approve the settlement in the U.S. Bankruptcy Court for the Southern District
of Florida. The settlement is subject to the approval of Bankruptcy Judge
Raymond B. Ray.
According to the filing, the settlement provides for a
$15 million cash payment to the Rothstein bankruptcy estates and an assignment
of claims to the estates with a potential value of more than $50 million.
Under terms of the proposed settlement, the trustees have agreed to an
injunction enjoining and permanently barring them from any claims against Gibraltar and its directors and officers in connection
with the Rothstein Ponzi scheme, according to the filing.
Rothstein is alleged to have used accounts at Gibraltar in the fraud with the assistance of the bank's
directors and officers. The bank previously reached a $70 million deal
with the trustees, to which investors objected, saying they lost a total of
$160 million in the fraud.
Rothstein is serving a 50-year sentence in federal prison
after pleading guilty to five felony charges related to the $1.2 billion Ponzi
Furr is represented by Russell M. Blain and Scott A.
Stichter of Stichter Riedel Blain & Prosser in Tampa, Fla.
Stettin is represented by Jesus M. Suarez of Genovese Joblove & Battista in
Gibraltar is represented by Eugene E. Stearns, Harold D. Moorefield Jr. and
Andrew E. Stearns of Stearns Weaver Miller Weissler Alhadeff & Sitterson in
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