Another Rothstein Associate Pleads Guilty In Ponzi Scheme
FORT LAUDERDALE (CBS4) – The second of four men who worked with convicted Ponzi schemer Scott Rothstein pled guilty Wednesday in Fort Lauderdale federal court to conspiracy to commit wire fraud.
Stephen Caputi, 53, Rothstein's partner in the Café Iguana nightclub in Pembroke Pines, admitted in court that he posed as banker at Rothstein's request to help him cheat investors out of millions. Caputi 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 non-existent settlement, paying Caputi a fraction of it up front and being told they would get the rest later.
His sentencing is set for late August and Café Iguana is in the process of being sold by the government to repay Rothstein's victims.
Tuesday, former Rothstein law partner Howard Kusnick, 58, also pled guilty to a wire fraud conspiracy charge in the $1.4 billion Ponzi scheme.
Kusnick will be sentenced September 2, 2011 at 10:00 a.m. before U.S. District Court Judge Kenneth A. Marra. Kusnick faces a maximum sentence of up to five years in prison.
According to prosecutors, 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.
The other two people charged in the case are Curtis Renie, 38, a computer technology expert in Rothstein's now defunct law firm, and William J. Corte, 38, a law firm technology specialist.
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.
Both Renie and Corte are scheduled to plead guilty in the coming days.
Rothstein, 49, 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.
