Miami, FL – Investors robbed of $1.3 billion by lawyer Scott Rothstein in a Ponzi scheme will end up recovering only pennies on the dollar.
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Lawyers representing those looted filled in Federal court midday Monday in hopes of collecting $0.10 for every dollar their clients lost. “The government said $50 to $60 million; I think it’s closer to $30 to $40 million, but we’ll hope for $50 to $60 [million]. I’m not sure that the amount the government has seized will be $50 to $60 [million],” attorney William Scherer said of the pro-rated award that will be divided among an estimated 320 individuals.
The judge who will decide on the partial reimbursement’s exact dollar figure also ordered half of Rothstein’s ongoing 50-year Federal prison sentence labor earnings go to the victims. In addition to auctioning off Rothstein’s car collection, watercraft fleet and mansions, the last of which having gold-plated toilet seats in its bathrooms, authorities are trying to recover $16 million in cash that the shamed attorney supposedly took aboard a private jet flown to Morocco in an attempted escape.
Rothstein, who admitted to taking the money and pretending to invest it, left many of his investors without a dime. “They’re not all millionaires,” said victim Steven Bitton, who is grateful to have $5,000 returned to him. “I’m not, by any means, a millionaire myself. Like I said, I’ve been out of work for almost three years now because of this situation and what happened, and I’m very happy about the outcome.”
After a while, its really hard to feel sorry for these wealthy yidden who rush to give their money to these ganovim who have “reputations” for earning above market returns with no risk. It is also insanity to trust 100 percent of your assets to one money manager, yet they continue to do it. There is no free lunch and even a very simple amount of due dilligence would show that these are frauds but greed overcomes common sense. I hope they get somthing back and learn from this experience but I can guarantee you that within a few months we will be reading about the next ponzi scheme that “victimized”another bunch of greedy yidden.
What difference does it make. If it wasn’t for this guy someone else would have done it. There’s a scam every few minutes these days. The more money you have, the bigger idiot you are, it seems. You will lose your money and the crook will become a new hero with emphasis to get him kosher food and out by shabbos. Been there. Done that. Now waiting for a Toyota recall or a David Greenfield press release.
” … victim Steven Bitton, who is grateful to have $5,000 returned to him. “I’m not, by any means, a millionaire myself. Like I said, I’ve been out of work for almost three years now because of this situation …”
He’s been out of work for three years because of a bad investment?