Rothstein Reveals How $1.2 Billion Ponzi Scheme Money Was Spent

FORT LAUDERDALE (CBS4) – Convicted Ponzi schemer Scott Rothstein swindled investors for $1.2 billion and documents released Friday night offer some insight on just who he spent that money on.

More depositions were released today by the law firm Conrad and Scherer , and it appears famous boxing promoter Don King dined, partied, and eventually collected seven hundred thousand dollars from Rothstein.

In exchange, Rothstein’s firm’s name was plastered all over the ring for a Valentine’s Day fight.

Despite the cost rivaling that of a national super bowl ad, Rothestein had little regret.

He told attorneys: “Unfortunately, during the periods of my life where I was spending other people’s money, I spent it like I hate it.  Spent money like I hated the money.  I didn’t care.”

In the depositions, Rothstein also spoke about spending money on local charities as well, all in the name of advertising. According to the deposition, those charities included The Dan Marino Foundation, The Alonzo Mourning Foundation, and the Wade’s World Foundation.

Rothstein is divulging everything he did in hopes federal authorities will shave time off his 50 year prison sentence for cooperating.

In the process, though, he may be sending others to prison including his law partner Stuart Rosenfeldt, who has claimed innocence since the scheme exploded.

Attorneys suggested Rosenfeldt collected $2 million a year through his law firm. Rothstein says he made far more from the Ponzi scheme.

“You’d have to take into account the cash I spent on him,” Rothstein said. “The cash that I gave him, the gifts that I purchased for him and the multitude of things that were paid for through the firm.”

More from David Sutta
Comments

One Comment

  1. Michael Wind says:

    what about the chabad in ftlauderdale that this criminal used the stolen money to build is that being lost or perhaps they should return the money,or the house that michael szafranski purchased in his wifes name in a gated community in bal harbor is that ok,or issac salver the commisiner in bay harbor islands who is protecting him…

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