Raw Video of Kim Rothstein walking into the courthouse on Wednesday. The wife of convicted Ponzi schemer Scott Rothstein is expected to make her first appearance in federal court on charges she tried to hide jewelry bought with proceeds from the scam from the government.
The wife of convicted Florida Ponzi schemer Scott Rothstein has pleaded not guilty to a conspiracy charge after she allegedly hid over $1 million in jewelry from investigators.
After entering her plea, 38-year-old Kim Rothstein was released Wednesday on $500,000 bail and ordered to observe travel restrictions. The South Florida Sun Sentinel reports that she was brought into court in shackles and was wearing no jewelry.
Despite the not guilty plea, Kim Rothstein's attorney says she will take responsibility for her actions and work out a plea agreement with prosecutors. Her former attorney, a friend and two other men are also charged in the jewelry scam.
Kim Rothstein faces a potential five-year prison sentence.
Also scheduled to appear is her former attorney, Scott Saidel.
Last week, Rothstein, Saidel and Rothstein's friend, Stacie Weisman, were charged with conspiracy to commit money laundering, to obstruct justice and to tamper with a witness.
Two others, Patrick Daoud and Eddy Marin, were charged with obstruction of justice and perjury.
According to prosecutors, as part of his plea agreement Scott Rothstein had agreed to forfeit to the government all assets acquired through the $1.2 billion scheme, including real estate, vehicles, vessels, business interests, luxury watches, sports memorabilia and jewelry.
On Nov. 9, agents with the IRS went to the Rothstein residence where they were assisted by Kimberly Rothstein in retrieving the cash, jewelry and watches, prosecutors said.
But before, during and after the seizure, Kimberly Rothstein, Weisman and Saidel concealed more than $1 million in jewelry to keep it away from the government, prosecutors said.
The three later sold and attempted to sell a portion of the jewelry to and through various persons, including Marin and Daoud.
All five later took steps to conceal the location of the jewelry in connection with civil bankruptcy proceedings, and Marin and Daoud committed perjury during depositions related to the proceedings, prosecutors said.
Kimberly Rothstein, Weisman and Saidel even tried to have Scott Rothstein give false testimony in connection with the proceedings, prosecutors said.
After the charges were announced, Kimberly Rothstein's attorneys released a statement saying she "takes full responsibility for her actions in regard to the charge filed today" but said she had no involvement in her husband's scheme.
Scott Rothstein is serving a 50-year sentence after pleading guilty to charges related to the massive scheme.