Nevin Shapiro Controversy Spreads

NBC Miami has found allegations against the two lawyers who represented Nevin Shapiro in his criminal case

As the Miami Hurricanes prepare for one of the biggest games in years, the storm of controversy at the university has now encompassed two prominent South Florida attorneys. 

NBC Miami’s Consumer Investigative Unit has found allegations against  the two lawyers who represented convicted Ponzi schemer Nevin Shapiro in his criminal case.  The allegations claim the attorneys may have received money as payment for legal fees that Shapiro may have gained from his Ponzi scheme.  
 
Prosecutors say some of the $82 million Shapiro stole from investors through his firm Capitol Investments USA was used to fuel his good times on land and sea.
 
“The consequences are serious because we are talking about a significant amount of money,” said Brian Bieber, a Coral Gables attorney, who is not related to the case.
 
Shapiro's former attorneys are Guy Lewis, the former top federal prosecutor in South Florida and law partner, Michael Tein. They are now facing a civil legal action, which was brought by Joel Tabas. Tabas was selected by the bankruptcy court to get the Ponzi scheme victims’ money back.
 
Tabas claims the two attorneys took a vast sum when they gained ownership of Shapiro's party boat, ultimately resulting in a profit of $457,000, money the civil lawsuit says was collected in the Ponzi scheme. Tabas claims the lawyers had no right to take any of those funds.
 
Tabas also claims the attorneys accepted fraudulent transfers totaling $455,000, funds Tabas says Shapiro admitted to obtaining in the Ponzi scheme and should not have transmitted to the attorneys.  
 
Lewis and Tein declined NBC Miami’s request for an interview.
 
“Its commonly fevered to as a claw back action figuratively, literally, its a claw the trustee reaches out to all the recipients of Capitol and of Shapiro to retrieve all funds paid,” Bieber said.
 
Tabas says it was improper for Lewis and Tein  to accept the funds from Shapiro's company, which Tabas says, ran the Ponzi scheme. Tabas adds that they weren't working for the company but were hired by Shapiro when he became worried he may be arrested.
 
An NCAA investigation suspended eight Hurricanes players for taking meals, free trips to nightclubs, a few hundred dollars in benefits for most.
 
Exhibits in the lawsuit indicate that to be able to transfer the yacht, Shapiro wrote checks for $200,000 and $107,536 to his bank to clear the title and then paperwork officially transferred the yacht to the lawyers.
 
Documents indicate the vessel was valued at $1 million, and Lewis and Tein renamed it the" Knot Guilty" then sold it for more than $640,000.
 
Lewis and Tein say Tabas cannot obtain a lien against them to retrieve the boat because they sold it and no longer have it. Lewis and Tein say they don’t know where the boat is.
 
But according to documents filed in the bankruptcy court , they deny the allegations made against them, and say they were not just working for Nevin Shapiro personally but were working for his company and therefore were entitled to be able to take the funds from the company to pay the legal bills.
 
“The critical thing for a forensic analyst to do and to carry out is to really establish the source of the money...Where did the money come from, follow the money trail,” said forensic accountant Frank Rosillo.
 
In their defense, Lewis and Tein say they did work equal to what they were paid, accepted the funds in good faith and with no knowledge the transfers might be improper. They contend work for Shapiro and Capitol are in essence one and the same, which they say is something Tabas already agreed to earlier. 
 
The trustee told NBC Miami he's found about $19 million of the $82 million taken in the scheme but nothing from Lewis and Tein, who say the funds were legally earned.
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