(Associated Press) Investigators say the alleged fraud scheme run by a prominent South Florida lawyer is likely to exceed $1 billion and involve thousands of investors.
Miami FBI chief John Gilles (GILL-eez) said Thursday morning that investigators want investors with attorney Scott Rothstein to come forward. Rothstein is suspected of misappropriating millions through a legal settlement investment scam.
No criminal charges have been filed yet, but in a civil complaint, prosecutors accused Rothstein of concocting a Ponzi scheme that lured millions from investors. Gilles said the investigation is likely to take weeks or longer.
In a special edition of Voices of the Law, Mark Wahlstrom and Jan Schlichtmann discuss how this fraud has smeared the structured settlement industry by falsely implying that Rothstein was selling or manipulating structured settlements, when in fact it was a standard variety, but grand scale Ponzi scheme based on the cash now industry that is plaguing the legal profession.
Listen in as The Civil Action Attorney Jan Schlichtmann discusses this fraud, it's impact on the legal profession and the need for lawyers to stand firm against ethical and financial temptations that put their clients at potential risk.