FORT LAUDERDALE, Fla. — A once- high-flying lawyer who courted politicians and celebrities was arrested Tuesday on federal racketeering and fraud charges alleging he operated a $1 billion investment scheme involving phony legal settlements.
Lawyer Scott Rothstein was led into the Miami FBI office in handcuffs after his early-morning arrest on five charges, including a violation of the Racketeer Influenced and Corrupt Organizations law, often used against the Mafia and other criminal organizations.
Rothstein also was charged with wire fraud, money laundering, and mail- and wire-fraud conspiracy. The combined maximum prison term for convictions on all counts is 100 years, according to court documents.
“This case is a glaring example of greed run amok,” acting Miami U.S. Attorney Jeffrey Sloman said. “He sought to buy power and influence at the expense of his clients and instead has potentially bought himself a lengthy prison sentence.”
A few hours after his arrest, Rothstein pleaded not guilty in federal court even though the information charging document — rather than an indictment — used by prosecutors typically means a defendant has agreed to eventually plead guilty.
“There is no deal at this point in time,” said Rothstein attorney Marc Nurik.
Nurik added that Rothstein — shackled and wearing a black T-shirt and blue jeans in court — intends to repay as many investors as possible.
“At the end of the day, the people who deserve to get money back hopefully will,” Nurik said.
