Feds: Rothstein Had Help in $1 Billion Scheme
Feds ask for associates close to alleged Ponzi schemer to come forward
AP
Attorney Scott Rothstein
The FBI is building its case against alleged South Florida Ponzi schemer Scott Rothstein, who may soon be officially arrested and charged, they said.
Dozens of agents are working on the case against Rothstein, whose fraud scam may have been far worse than originally estimated.
"When it's all said and done, I estimate that this scheme could well exceed $1 billion," said John Gillies, agent in charge of the South Florida office of the FBI.
Gillies, along with some of his agents and IRS agents, held a press conference this morning to ask anyone with any dirt on the Fort Lauderdale lawyer and political mover and shaker to come forward.
Rothstein, 47, is accused of bilking investors to fund his luxurious lifestyle, filled with pricey cars and several million dollars in real estate. His scheme was originally thought to have brought in tens of millions of dollars, not the billion the FBI is alleging.
Gillies said he thinks Rothstein had help.
"I do not believe this was a one man show," South Florida's top G-Man said today.
And when does he expect Rothstein to be charged?
"We are conducting this investigation in a timely manner, but we will not be rushed," Gillies said.
Feds seized most of Rothstein's assets on Monday, including three sports cars and his 80-foot yacht.
Though the FBI hasn't officially charged Rothstein with any crime, at least one civil lawsuit was filed earlier this week by duped investors. And the IRS filed court documents alleging that Rothstein had been running his Ponzi scheme since 2005, forging documents and falsifing bank records, as well as concocting legal settlements that didn't exist.
Gillies urged anyone who may have benefitted from the scheme to come forward as well, adding that they should have known better.
"There is no gold mine in Iraq, there are no bank accounts in Nigeria, the director of the FBI is not looking for your bank account information. If it's too good to be true take a step back, these things should be red flags to investors," Gillies said. "In these economic times, the interest rates that were promised in this just aren't practical."
Gillies announced a special FBI telephone line and e-mail address in which victims or anyone with any info on Rothstein can contact them. Info can be provided at 1-800-CALL-FBI. Just select the "Rothstein Option" on the menu. Or the FBI is accepting e-mails at rothstein.investment@ic.fbi.gov.
As for any worries over Rothstein possibly running, Gillies said it's in the back of his mind.
"Obviously it's always a concern," Gillies said. "He can run, but he can't hide."
Posted Thursday, Nov 12, 2009 - 10:33 AM EST
