4th Rothstein Defendant Surrenders For Role In Ponzi Scheme
FORT LAUDERDALE (CBS4) -- A fourth person who worked with convicted Ponzi schemer Scott Rothstein turned himself in to face criminal charges Wednesday after three others already surrendered to authorities to face federal charges in the $1.4 billion Ponzi scheme.
Former Rothstein law partner Howard Kusnick, 58, was criminally charged Wednesday on a single count of conspiring to commit wire fraud, according to The Sun Sentinel. Following his initial court appearance, he was released on a $100,000personal surety bond, just like the three others charged in connection with the case in recent days.
Curtis Renie, 38, a computer technology expert in Rothstein's now defunct law firm, surrendered at the federal courthouse in Fort Lauderdale Tuesday and two others; William J. Corte, 38, a law firm technology specialist and Stephen Caputi, 53, an associate of Rothstein's have also been charged.
All four men are accused of helping Rothstein carry out various aspects of his complex $1.4 billion fraud. They are charged with wire fraud conspiracy and face up to five years in prison.
Renie and Corte, the two IT specialists, are accused of setting up a bogus bank web site to make it look like Rothstein was well-funded. On one occasion, investigators say, the fake bank account stated he had more than a billion dollars in the bank. The false account balances were shown to investors to induce them to invest into the fraudulent investment scheme.
Caputi, Rothstein's partner in the Café Iguana nightclub in Pembroke Pines, allegedly posed as both a banker and as a client represented by the firm. He allegedly showed phony bank statements to convince potential investors that Rothstein was offering a sound deal. In another case, investigators say he acted as a plaintiff who was due a $10-million settlement over time. Investors thought they were buying into that settlement, paying Caputi a fraction of it up front and being told they would get the rest later.
Investigators allege Kusnick schemed to defraud car dealer Ed Morse and his wife out of $57 million by writing a letter that appeared to settle a lawsuit in their favor. However, there was no such litigation or settlement, and prosecutors said the purpose was to make the clients think their money was being used for a lawsuit -- when it was actually going to pay off other investors and to further the investment fraud scheme.
Prosecutor Jeffrey Kaplan said in court Friday that the cases could be resolved in a few weeks.
Rothstein, 48, is currently serving a 50-year prison sentence after pleading guilty last year to racketeering, money laundering and fraud. He is serving the sentence in an undisclosed location after helping authorities prosecute a reputed Mafia figure. Authorities have been selling off Rothstein's homes, boats, flashy cars and other assets to compensate wronged investors.
Previously charged was Rothstein's former top assistant Debra Villegas. She is serving a 10-year prison sentence after pleading guilty to a money-laundering conspiracy charge.
