Coral Gables

Bank Linked to Ponzi Schemer Rothstein Fined $6.5M by US

A bank linked to imprisoned Ponzi schemer Scott Rothstein has been fined $6.5 million by federal regulators for failing to report money laundering activity.

Coral Gables-based Gibraltar Private Bank and Trust Co. was fined $4 million by the Treasury Department's Financial Crimes Enforcement Network for failing to file 120 suspicious activity reports connected to Rothstein's scheme. The bank was also fined $2.5 million by the Office of the Comptroller of the Currency for similar failures.

Bank officials did not immediately respond Friday to a telephone call seeking comment.

Rothstein is serving a 50-year prison sentence for operating a $1.2 billion Ponzi scheme that revolved around investments in phony court settlements. A total of 29 people have been convicted in the scam, which imploded in late 2009.

Copyright AP - Associated Press
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