Ponzi Scheme Research Paper
Memorandum to file.
Date: June 24th, 2013.
Subject: Scott Rothstein’s Ponzi scheme.
The purpose of this memo is to document my research on Scott Rothstein’s Ponzi scheme, the biggest fraud case in Florida. Did Scott Rothstein knowingly lie and take money from investors, promising high fake returns, only to benefit himself and his conspirators? How he got away with this scheme without being caught is outlined. I have also included some of the red flags that were missed.
Facts
Rothstein and Stuart Rosenfeldt opened a law firm in 2002 called Rothstein Rosenfeldt Adler. Rothstein was a people person and was able to engage easily with all types of people. His friendship and ability to get along with people high in rank, like Governor …show more content…
This should have been suspicious .Gifts and lavish items given to employees to gain loyalty and give the appearance of a successful firm should have been another sign. The increase in salary for Debra Villegas within a short period didn’t really match up to her duties. Rothstein’s parents dressed very strangely in expensive and ridiculous stylish clothes for people their age. It was apparent they did not care how they spent the money. “I mean, here 's a 75-year-old man in baggy jeans and an eighty-dollar t-shirt.” (Crandell, 2013) Money was paid to high ranking officials in the police department to deflect scrutiny from the unlawful acts. Police guarded Rothstein’s house round the clock. This should have somewhat given it away since no one in Florida, especially with such a low salary, had round the clock police protection.
The relationship with Bill Rock should have been suspicious because only Bill had access to the checks written for Rothstein’s ventures. (Wikipedia, n.d). Banks were also not paying attention, given the large amount of money that was transferred to and from the trust accounts. Partners should have noticed the money missing from the client’s escrow accounts. Rosenfeldt should have become suspicious when Rothstein didn’t allow him to look at the company books.
Date: June 24th, 2013.
Subject: Scott Rothstein’s Ponzi scheme.
The purpose of this memo is to document my research on Scott Rothstein’s Ponzi scheme, the biggest fraud case in Florida. Did Scott Rothstein knowingly lie and take money from investors, promising high fake returns, only to benefit himself and his conspirators? How he got away with this scheme without being caught is outlined. I have also included some of the red flags that were missed.
Facts
Rothstein and Stuart Rosenfeldt opened a law firm in 2002 called Rothstein Rosenfeldt Adler. Rothstein was a people person and was able to engage easily with all types of people. His friendship and ability to get along with people high in rank, like Governor …show more content…
This should have been suspicious .Gifts and lavish items given to employees to gain loyalty and give the appearance of a successful firm should have been another sign. The increase in salary for Debra Villegas within a short period didn’t really match up to her duties. Rothstein’s parents dressed very strangely in expensive and ridiculous stylish clothes for people their age. It was apparent they did not care how they spent the money. “I mean, here 's a 75-year-old man in baggy jeans and an eighty-dollar t-shirt.” (Crandell, 2013) Money was paid to high ranking officials in the police department to deflect scrutiny from the unlawful acts. Police guarded Rothstein’s house round the clock. This should have somewhat given it away since no one in Florida, especially with such a low salary, had round the clock police protection.
The relationship with Bill Rock should have been suspicious because only Bill had access to the checks written for Rothstein’s ventures. (Wikipedia, n.d). Banks were also not paying attention, given the large amount of money that was transferred to and from the trust accounts. Partners should have noticed the money missing from the client’s escrow accounts. Rosenfeldt should have become suspicious when Rothstein didn’t allow him to look at the company books.