The Ponzi Pounce
Ponzi USA
Petters Ponzi Scheme Nets 50-Year Sentence
Editor's note: Scott Rothstein was sentenced to 50 years in prison for his Ponzi scheme on June 9, 2010. More details on the sentence are available here.
He ran a $1.2 billion Ponzi scheme, laundered money, and lied to clients, colleagues, and investors.
But, when it comes to sentencing Scott Rothstein for his crimes, legal experts agree that his biggest problem is his gross abuse of the legal system. The 47-year-old Ponzi schemer is facing up to 100 years in prison.
There are mitigating factors: Rothstein’s help in bringing down alleged mobsters will be noted, experts say.
But any benefit provided by his cooperation may be outweighed by the inescapable fact that he spent years undermining the state and federal justice system.
“The same judicial system that he desecrated will now pass judgment on him,” said Charles Intriago, a former prosecutor who founded the Association of Certified Anti-Money Laundering Specialists. “If I was a federal prosecutor, I’d be saying those things on behalf of the United States of America.”
The pinnacle of Rothstein’s abuse of the legal system came when he forged the signatures of two federal judges while trying to fleece one of his best-known clients, Ed Morse of the Ed Morse Automotive Group, which has dealerships throughout Florida and in Mobile County, Alabama.
Rothstein has already pleaded guilty and will appear before U.S. District Judge James Cohn on June 9 to learn his fate. He was charged with five criminal counts, including wire fraud, mail fraud, racketeering, and money laundering. Speculating about his sentence has become a popular guessing game in legal and business circles.
Ian Goldstein, a white-collar crime attorney in West Palm Beach, Florida, noted that Rothstein was charged with an information, not an indictment. That indicates deals were already struck in the case because Rothstein may have faced more charges if his case had been presented to a grand jury.
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