Rothstein Ponzi Scam Player To Plead Guilty

FORT LAUDERDALE (CBSMiami/AP) — Another player in former Ft. Lauderdale attorney Scott Rothstein’s $1.2 billion Ponzi scam is expected in federal to enter his plea on Tuesday.

Frank Preve will plead guilty to wire fraud conspiracy, which carries a five-year maximum prison sentence. Preve ran the Banyon Group, which invested in Rothstein’s supposedly confidential but ultimately bogus legal settlements.

Court documents say Preve was aware a few months before the scheme collapsed in 2009 that Rothstein was not keeping his commitments to the Banyon investors and that Preve failed to inform them.

Preve’s attorney Ray Rasco previously said Preve reached a plea deal with prosecutors to what the lawyer says are mainly technical investor violations.

Nearly two dozen people have been convicted in the Rothstein case. Rothstein is serving 50 years in prison.

(TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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