Ponzi Schemer's Wife Sued for $1.1 Million

Bankruptcy lawyers go after Kim Rothstein's pricey accessories

By Brian Hamacher
|  Thursday, Mar 11, 2010  |  Updated 10:52 AM EDT
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A Sneak Preview of Scott Rothstein's Stuff

AP

Kim Rothstein. left, waits to speak to the media after her husband Scott Rothstein pleaded guilty to federal charges that he ran a $1.2 billion Ponzi scheme Wednesday, Jan. 27, 2010 at the U.S. Federal Courthouse in Fort Lauderdale. Rothstein's mother, Gay Rothstein, is at right. (AP Photo/Sun Sentinel, Amy Beth Bennett)

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Rothstein Auction Preview

Bidders get a look at accused Ponzi Schemer Scott Rothstein's office junk.

Kim Rothstein Speaks, Bodyguard Fights

Kim Rothstein reads a prepared statement after her husband pleads guilty, then her bodyguard fights with a reporter.
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As her husband was pleading guilty in late January to running a $1.2 billion Ponzi scheme through his Fort Lauderdale law firm, Kim Rothstein, traveling in her Cadillac Escalade and accompanied by her personal bodyguard, spoke out for the first time to claim she didn't benefit from the scheme. 

"For any who believe I have been personally enriched by Scott's activities, I can assure you quite the contrary," she said at the time.

A new lawsuit seeking $1.1 million from Mrs. Rothstein, filed yesterday, begs to differ.

The suit, filed by bankruptcy attorneys investigating Scott Rothstein's scheme, claims Kim spent a whopping $900,000 on jewelry, clothes and just about anything else you can imagine, using an American Express credit card issued by Scott's firm, Rothstein Rosenfeldt Adler, according to the Sun-Sentinel.

She also raked in an additional $200,000 in salary and reimbursements for political contributions.

Scott Rothstein, 47, awaits his May 6 sentencing behind bars after pleading guilty to charges of fraud, conspiracy and racketeering. He faces a maximum of 100 years in prison.

Kim's $900,000 tab, racked up from 2006 until about the time the Rothstein fraud unraveled in Oct. 2009, runs the gamut of everything a trophy wife needs.

"Jewelry, clothing, shoes, handbags, leather goods, plastic surgery treatments, eyewear, electronics, local hotel room and spa charges, household furnishings, home gym equipment, vacations and personal travel, athletic club charges, groceries, charitable contributions, personal meals, general household and other items," according to the suit.

Gucci, Louis Vuitton and Zola Keller were some of her favorite brands.

Though Mrs. Rothstein claims all of her jewelry was already seized by federal agents, accountants think there could be even more items.

"It is believed this additional sum is well into the millions of dollars, just on jewelry purchases alone, and not counting personal consumer goods," the suit against her claims.

Though Kim Rothstein has not been implicated in the scheme, the suit shows that she received salary from her husband's firm on at least two occasions. In 2006, she received over $78,000 from the firm's payroll, and an additional $75,000 in 2009.

The suit claims Mrs. Rothstein provided no meaningful service to the firm to deserve the salary.

She was also reimbursed for over $100,000 in campaign contributions made in her name to the National Republican Senatorial Committee as well as the John McCain presidential campaign.

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