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Two more Scott Rothstein associates charged in massive Ponzi scam

 

Two more former employees of Ponzi schemer Scott Rothstein were charged with conspiracy in his elaborate plot to perpetuate his investment scam, among the largest frauds in Florida history.

jweaver@MiamiHerald.com

The multiple identities of Scott Rothstein — big-shot lawyer, political operator and Ponzi schemer — were in the spotlight again Thursday, when federal prosecutors charged two of his former employees with conspiracy offenses in the continuing probe of his $1.2 billion investment scam.

William Boockvor, 66, of Deerfield Beach, Rothstein’s uncle, was charged with conspiring with the convicted lawyer to falsify his law firm’s trust account records at Toronto Dominion Bank. The goal: to induce investors into buying bogus legal settlements.

Boockvor handled accounting, banking and other tasks for his nephew at the now-defunct 70-attorney Fort Lauderdale firm, Rothstein Rosenfeldt Adler. He is accused of helping Rothstein dupe potential investors, who collectively lost more than $350 million before the scheme collapsed two years ago.

Marybeth Feiss, 42, of Fort Lauderdale, was charged with conspiring with Rothstein and other employees in an election racket to donate more than $1 million to John McCain’s presidential campaign and Republican political committees in 2008.

Feiss, an administrative assistant for Rothstein, helped him organize fundraisers for McCain, former Gov. Charlie Crist and other major politicians. Rothstein also allegedly bundled campaign donations from his firm’s employees — including a $2,300 contribution from Feiss — and reimbursed them with salary bonuses.

As a result, prosecutors said, Rothstein was named a Florida delegate to the 2008 Republican National Convention and was appointed to a state commission that recommended judicial candidates to the governor.

“Rothstein tried to buy political influence with the money he stole from the Ponzi scheme to contribute millions of dollars to political campaigns,” said John Gillies, the FBI’s top agent in Miami.

Boockvor, charged with wire-fraud conspiracy, and Feiss, charged with campaign-finance conspiracy, are expected to be arraigned next week in federal court in West Palm Beach. They each face up to five years in prison.

Feiss’ attorney, Bruce Lyons, said she was not involved in Rothstein’s Ponzi scheme. “She was merely an employee,” Lyons said. “It’s unfortunate she got caught up in Rothstein’s net.”

Boockvor’s attorney, John F. O’Donnell, could not be reached for comment.

The charges filed by the U.S. Attorney’s Office peeled back more layers of Rothstein’s elaborate plot to prop up his profile in legal, political and financial circles. It was all done to perpetuate his investment scam, among the largest frauds in Florida history.

“The tentacles of Rothstein’s billion-dollar Ponzi scheme reached far and wide,” U.S. Attorney Wifredo Ferrer said. “Rothstein relied on many people to facilitate his fraud.”

The charges against Rothstein’s two assistants bring the total number of employees and others prosecuted in the massive scheme to eight, including Rothstein, 49. He is serving a 50-year sentence on racketeering conspiracy charges.

In coming months, a larger group of suspects, including some lawyers from the former firm, are expected to be indicted as part of the conspiracy. If convicted, they could face at least 20 years in prison.

Rothstein’s former partners, Stuart Rosenfeldt and Russell Adler, have denied any wrongdoing, saying they were unaware of Rothstein’s fabrication of lawsuit settlements sold to wealthy investors from Florida to New York to Texas.

According to the charges filed Thursday, Boockvor is accused of providing investors with falsely inflated balance statements of the law firm’s trust accounts at TD Bank, where Rothstein held money for clients and investors. He also is accused of assisting TD Bank employees to prepare “envelopes” for the false account balance statements as well as cover letters.

The bank employees, in turn, provided the envelopes to Rothstein as he pitched investors to buy his phony legal settlements, according to the charges.

Boockvor also is accused of conspiring in the same way with a Rothstein friend, Stephen Caputi, a one-time nightclub owner who posed as a TD Bank employee to lure investors. Earlier this year, Caputi pleaded guilty to a conspiracy charge and was sentenced to five years in prison.

The result: Investors were misled into believing that the law firm’s bank accounts holding purported settlements from sexual-harassment and other suits held enough money to fund their investments, according to the team of prosecutors, Lawrence LaVecchio, Paul Schwartz and Jeffrey Kaplan.

Dozens of investors were tricked into buying the settlements at a discount in the belief that they would be paid in full over a span of years, they said.

In one instance, a New York investment group wired $10 million to TD Bank after a bank employee and Rothstein showed the group’s representative a falsified account balance of $20 million on the bank’s letterhead.

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