The remaining name partner in the once-storied law firm operated by convicted Ponzi schemer Scott Rothstein has reached a plea agreement with prosecutors. Stuart Rosenfeldt, 59, pleaded guilty in a Miami federal court to a single conspiracy charge that he committed bank fraud, violated a prostitute's civil rights, and made illegal campaign contributions. Rosenfeldt, a former name partner in Rothstein Rosenfeldt Adler ("RRA"), could face up to five years in federal prison when he is sentenced on September 24. Rothstein is currently serving a 50-year prison sentence after pleading guilty to operating his $1.2 billion Ponzi scheme, while Russell Adler pleaded guilty to a conspiracy charge back in April.
Despite insinuations by Rothstein that Rosenfeldt had to have been aware of his massive scheme, prosecutors never alleged that Rosenfeldt was involved or aware of the scheme. However, Rothstein's extensive participation with authorities implicated Rosenfeldt in other criminal acts, including (1) making hundreds of thousands of dollars of illegal campaign contributions; (2) participating in a check-kiting scheme to cushion the firm's finances when needed; and (3) the use of law enforcement officers to force a prostitute and her boyfriend to leave Florida after Rosenfeldt believed the prostitute would expose their relationship.
At its peak, Rothstein's firm employed seventy lawyers - the vast majority of whom have not been accused of any wrongdoing in connection with Rothstein's scheme. Indeed, many of those lawyers lost their jobs when the firm declared bankruptcy after Rothstein's scheme unraveled. Rosenfeldt marks the fifth former RRA lawyer to be convicted, and joins over a dozen other individuals that have been convicted for their role in the scheme.
Previous Ponzitracker coverage of the Rothstein scheme is here.
For 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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