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FORT LAUDERDALE

Back from Morocco, attorney Scott Rothstein faces feds

Scott Rothstein, the high-profile Fort Lauderdale lawyer accused by investors and law partners of stealing millions of dollars, returned from an overseas trip to meet federal authorities.

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jweaver@MiamiHerald.com

``He has in my view for now relinquished his authority with regard to that law firm,'' Streitfeld said.

Although the judge had suggested Monday that Rosenfeldt should be appointed the receiver, on Tuesday he concluded the firm needed independent oversight. The law firm's lawyer, former U.S. attorney Kendall Coffey, agreed.

`CLUELESS'

Streitfeld raised concerns about Rosenfeldt's statements that although he was a 50 percent owner of the law firm, ``he is clueless'' about its finances. Rosenfeldt did not respond.

Among Rothstein's biggest investors: a private Fort Lauderdale-based investment firm called Banyon, which claims it has lost hundreds of millions of dollars.

The firm, run by George Levin, declined to comment about Rothstein.

But a company representative, Jesse Derris, said Banyon's lawyers contacted the U.S. attorney's office in South Florida last weekend after ``realizing something suspicious'' had occurred with their investments with Rothstein.

A source close to one investor said that Rothstein kept the ``structured settlement'' investments in trust accounts at Toronto Dominion Bank.

Jeffrey Sonn, a Fort Lauderdale attorney representing investors, said in an interview that he has talked to other lawyers who claim investors in Morocco gave Rothstein $85 million.

Sonn said that some investors were being paid commissions of up to 20 percent to lure other investors into the deal.

Sonn, who reviewed documents associated with Rothstein's investment fund, said some were written on the law firm's letterhead. The money was wired to and from a Canadian bank.

Sonn added that Rothstein ran his investment operation with one or two people but he did not know if they had a relationship with the law firm.

Also Tuesday, politicians and political parties that received contributions from Rothstein started giving back some or all of the donations.

Among them: Gov. Charlie Crist, state Chief Financial Officer Alex Sink, Senate President Jeff Atwater, Rep. Ellyn Bogdanoff, the Florida Democratic Party and the Republican Party of Florida.

Herald/Times reporter Marc Caputo and Herald staff writer Diana Moskovitz contributed to this report.

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