Scott Rothstein - Money Laundering Synopsis
December 12
Scott
Rothstein
2013
In July of 2010, Scott Rothstein was sentenced to 50 years in prison for running a US$1.2 billion Ponzi scheme from his Florida law firm. DH Gatsby
EXECUTIVE SUMMARY: Money Laundering & Scott Rothstein
In July of 2010, Scott Rothstein was sentenced to 50 years in prison for running a US$1.2 billion
Ponzi scheme from his Florida law firm.
Rothstein had two types of schemes. He persuaded clients/investors to purchase hundreds of millions of dollars of structured settlements at a discounted price so that he could generate immediate revenue from false settlements. Through the use of his law firm he fabricated court orders, forging the signatures of federal court judges, that showed that his clients had been awarded large sums of money in lawsuits in an effort to promote his credibility and pocket book.
Clients were told that defendants had transferred funds to off shore accounts such as the Cayman
Islands. In order for Rothstein to recover the money, his clients had to post bonds worth millions of dollars with his firm. The offshore accounts were owned by Rothstein. Rothstein would used the acquired funds to live a lavish lifestyle (cash exchange for negotiable goods). The exchanges included such items as a 1967 Corvette convertible. a Ferrari F-40, a Ferrari F430 Spider, a
Mercedes SLR McLaren, a Bugatti Veyron, and a 2010 Lamborghini.
A fraudulent transaction follows certain trends. We will look at the methodology now.
Incentive
•
In this situation, Mr. Rothstein was living a lavish lifestyle. For him to afford such materialistic possessions he had to become innovative with acquiring more funds.
Opportunity
• Circumstances exist - in Mr. Rothstein 's case, he was a senior partner within his law firm. His reputation had been his strongest attribute. During his laundering time, Mr. Rothstein would offer exceptional gracious bonuses to him associates.
• Since he was a senior partner, many
Scott
Rothstein
2013
In July of 2010, Scott Rothstein was sentenced to 50 years in prison for running a US$1.2 billion Ponzi scheme from his Florida law firm. DH Gatsby
EXECUTIVE SUMMARY: Money Laundering & Scott Rothstein
In July of 2010, Scott Rothstein was sentenced to 50 years in prison for running a US$1.2 billion
Ponzi scheme from his Florida law firm.
Rothstein had two types of schemes. He persuaded clients/investors to purchase hundreds of millions of dollars of structured settlements at a discounted price so that he could generate immediate revenue from false settlements. Through the use of his law firm he fabricated court orders, forging the signatures of federal court judges, that showed that his clients had been awarded large sums of money in lawsuits in an effort to promote his credibility and pocket book.
Clients were told that defendants had transferred funds to off shore accounts such as the Cayman
Islands. In order for Rothstein to recover the money, his clients had to post bonds worth millions of dollars with his firm. The offshore accounts were owned by Rothstein. Rothstein would used the acquired funds to live a lavish lifestyle (cash exchange for negotiable goods). The exchanges included such items as a 1967 Corvette convertible. a Ferrari F-40, a Ferrari F430 Spider, a
Mercedes SLR McLaren, a Bugatti Veyron, and a 2010 Lamborghini.
A fraudulent transaction follows certain trends. We will look at the methodology now.
Incentive
•
In this situation, Mr. Rothstein was living a lavish lifestyle. For him to afford such materialistic possessions he had to become innovative with acquiring more funds.
Opportunity
• Circumstances exist - in Mr. Rothstein 's case, he was a senior partner within his law firm. His reputation had been his strongest attribute. During his laundering time, Mr. Rothstein would offer exceptional gracious bonuses to him associates.
• Since he was a senior partner, many