‘Before, During And After The Aforesaid Seizure’: Feds Charge Ponzi Schemer Scott Rothstein’s Wife, Her Attorney And Friend With Conspiracy To Obstruct Justice, Launder Money And Tamper With Witness In Alleged Plot To Conceal Assets

“Those who assist others to conceal assets subject to forfeiture will be fully investigated and prosecuted. Together with the U.S. Attorney’s Office, we will continue to pursue forfeiture of all assets acquired with funds derived from Rothstein’s Ponzi scheme.”José A. Gonzalez, special agent in charge of the IRS-Criminal Investigations Division, Sept. 6, 2012

Saying criminal conduct occurred “before, during and after” the seizure of assets linked to Florida Ponzi schemer Scott Rothstein, federal prosecutors today announced that Rothstein’s wife, her attorney and friend have been charged in an alleged bid to conceal more than $1 million in jewelry.

Two others also were charged.

“The integrity of our system of justice is based on the truthfulness of every witness that participates in the process,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “When a witness lies under oath or conspires to obstruct justice, the integrity of our system of justice is undermined. The charges filed against these five individuals are proof of our office’s commitment to safeguard and protect the integrity of our legal system. Thanks to the continued dedication and commitment of our law enforcement partners and our prosecutors, these individuals will be brought to justice and the integrity in our system of justice restored.”

Kimberly Wendell Rothstein, 38; Stacie Weisman, 49; and attorney Scott F. Saidel were charged with with conspiracy to commit money laundering, to obstruct justice and to tamper with a witness, prosecutors said.

Among the allegations against Kim Rothstein, Weisman and Saidel is that they “sought to have Scott W. Rothstein testify falsely” in a civil proceeding after Scott Rothstein’s corrupt law firm imploded in 2009.

Meanwhile, Eddy Marin, 50, and Patrick Daoud, 54, were indicted on charges of obstruction of justice and perjury, prosecutors said.

The Sun Sentinel is reporting that Daoud is a jeweler in Fort Lauderdale, the city in which Scott Rothstein’s epic, $1.4 billion Ponzi fraud collapsed in 2009 and took the Rothstein Rosenfeldt Adler law firm with it. Scott Rothstein was sentenced to 50 years in federal prison.

From a statement by prosecutors today (italics added):

According to the charging documents, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others.

As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme.

In fact, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.

The charging documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, all of the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in those proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with those proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.

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3 Responses to “‘Before, During And After The Aforesaid Seizure’: Feds Charge Ponzi Schemer Scott Rothstein’s Wife, Her Attorney And Friend With Conspiracy To Obstruct Justice, Launder Money And Tamper With Witness In Alleged Plot To Conceal Assets”

  1. Interesting that they say “sought to” have Scott testify falsely. Looks like that didn’t work out for them. I guess Scott didn’t want to have extra years added to his sentence, his wife’s material comfort be damned.

    Back when the Rothstein case first broke, her friend Stacie Weisman made a big show in the comments on Bob Norman’s blog at the New Times (Norman’s then-employer) of saying it was all lies, Scott didn’t flee to Morocco with a bunch of money, blah-blah-blah.

    I guess she was a better friend to Kimmie than anybody realized. Look where that got her.

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  2. Heh, some interesting reading… just before the Ponzi collapsed, Rothstein got into it with Bob Norman (who’s now moved on to TV). This is when I first started following the Rothstein saga.

    http://blogs.browardpalmbeach.com/pulp/2009/09/scott_rothstein_evan_jenne.php

    So many of the charity-ball-circuit local families were involved in the Ponzi that it was like our own little soap opera being played out in the press.

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  3. Marley: Heh, some interesting reading… just before the Ponzi collapsed, Rothstein got into it with Bob Norman (who’s now moved on to TV). This is when I first started following the Rothstein saga.

    http://blogs.browardpalmbeach.com/pulp/2009/09/scott_rothstein_evan_jenne.php

    So many of the charity-ball-circuit local families were involved in the Ponzi that it was like our own little soap opera being played out in the press.

    Thanks for sharing that link, Marley. It brings back memories. I followed Bob Norman’s reporting closely because of his skill and because of the obvious thuggishness directed at him prior to the Rothstein Ponzi collapse. Rothstein also tried to chill Bob Norman’s wife, also a reporter:

    http://patrickpretty.com/2009/12/02/the-ponzi-chill-in-weeks-prior-to-exposure-of-1-2-billion-scheme-scott-rothstein-threatened-journalist-with-lawsuit-newspaper-says/

    Patrick

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