Feds: Four To Be Indicted In Rothstein Ponzi Scheme Investigation
FT. LAUDERDALE (CBS4) - Four former associates of Scott Rothstein are expected to turn themselves in to federal authorities this week in connection with the disbarred Ft. Lauderdale attorney's $1.2 billion Ponzi scheme.
"Look, Scott had help, he didn't do it alone," said attorney Jeff Sonn. "We've know that from the beginning, it's just right now we're finally going to see who was helping him."
Attorney Jeff Sonn, who is representing some of Rothstein's victims, is keeping a close eye as more players in this scam prepare to turn themselves in.
Federal sources have told CBS4 that two of the four individuals are IT technicians hired by Rothstein, 48, to create fraudulent web pages that appeared to be from a bank website. The sources said Rothstein would use the pages to show potential investors how much money he had in his accounts.
A lawyer with Rothstein's former firm along and an employee who reportedly helped him set up the Ponzi scheme and posed as a banker when he met with potential investors will also be charged.
"You've got to hire people to play the part to create the theater. Because remember there were some pretty wealthy, sophisticated people who got taken here and they're not going to be taken easily," said Sonn.
All four individuals are expected to plead guilty, according to sources.
Sources familiar with the investigation told CBS4 time is running out for others involved in the Ponzi scheme to cut deals with the state.
"It now seems to be coming to a head," said Sonn. "I think those that don't chose to cooperate with the government are going to end up with harsher sentences."
Rothstein, who was sentenced to 50 years in prison, is being held at an undisclosed location as part of the federal prisons' witness protection program. Before he pled guilty in January 2010, Rothstein helped the FBI nab a suspected Italian mobster by recording incriminating conversations between them.
