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Scott Rothstein

Scott Rothstein fretted about drug-dealing at his law firm, transcripts show

 

Money and prostitutes? No problem. But the convicted Ponzi schemer told lawyers he was afraid marijuana sales in his law offices could bring unwanted trouble.

 

Scott Rothstein
Scott Rothstein
Charles Trainor Jr. / Miami Herald file, 2009

Sun Sentinel

Billion-dollar fraudster Scott Rothstein had no qualms about bilking investors — but worried that drug dealing inside his downtown Fort Lauderdale law firm had become so blatant that it might endanger his swindle, according to the latest transcripts of his testimony to be made public.

The convicted con man said he tried to stop his employees from selling marijuana, but that he had no problem with prostitutes gallivanting around the Las Olas Boulevard offices of Rothstein Rosenfeldt Adler — because he felt protected on that front.

“The police also were sleeping with my escorts,” Rothstein said. “Broward Sheriff’s Office, Fort Lauderdale Police Department weren’t going to bother me, okay, I could have had all the escorts I wanted.”

Then there were the organized-crime figures who would pop in to visit, Rothstein said.

“Mob guys, law enforcement, even judges from time to time, not federal judges, would show up,” he said.

Rothstein’s description of the antics in the now-bankrupt law firm he used as his criminal base came in 950 pages of transcripts made public Tuesday. His extraordinary, closed-door deposition session wrapped up on Friday.

So far, transcripts of the first six days of Rothstein’s 10 days of testimony have been released, with the disbarred attorney giving his version, under oath, of how he constructed his empire of lies and worked to maintain it with bribes, threats and lavish gifts before its collapse in October 2009.

Rothstein, 49, was sentenced last year to 50 years in prison for his $1.2 billion Ponzi scheme, the largest fraud in South Florida history. From the transcripts, Rothstein appears to relish his chance to tell all — including which of his law partners, business associates and investors allegedly took advantage of the sexual favors he paid richly to procure.

He told the lawyers interrogating him that he spent tens of thousands of dollars a month on women from strip clubs and escort services, and had girls on call in hotels and apartments.

A spokesman with the Fort Lauderdale Police Department said the agency would not respond to allegations made by a convicted felon two years after his arrest. Rothstein hired Fort Lauderdale police officers to work off-duty details watching his mansion, his law firm and his downtown restaurant.

“The Fort Lauderdale Police Department conducted a full and thorough investigation involving all aspects of the Scott Rothstein Ponzi scheme,” said department spokesman Frank Sousa. “The investigation determined that there were no criminal violations. Furthermore, that administrative review was independently reviewed by the State Attorney’s Office and feds who also determined that there was no criminal wrongdoing by our officers.”

Broward Sheriff’s Office spokesman Jim Leljedal said it would be inappropriate for his agency to comment on anything involving federal court matters.

“We’ll work with federal investigators and we’ll look into the allegations as we’ve been doing all along,” he said.

Rothstein’s testimony marks the first time he has ever testified about his crimes. He fielded questions from about 30 attorneys involved in the bankruptcy case affecting his law firm and civil litigation resulting from his fraud.

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