UPDATED 1:52 P.M. ET (U.S.A.) The Rothstein Rosenfeldt Adler (RRA) law firm recorded $8 million in receivables during an unspecified year, but paid out $18 million in salaries to its employees, according to an amended forfeiture complaint filed today in the Scott Rothstein Ponzi scheme case.
Ponzi proceeds of $10 million were used to close the revenue gap, prosecutors said. It was not immediately clear if the government intended to claw back the portion of the salaries allegedly paid for with Ponzi proceeds.
Today’s filing, which was co-signed by Assistant U.S. Attorney Alison Lehr and an investigator for the Internal Revenue Service, lists a dizzying array of property seized or targeted for forfeiture in the case to date. It also showcased the dangers Ponzis pose not only to investors, but also to beneficiaries of Ponzi largess given as charitable contributions or political donations.
Tainted funds were given to politicians and charities such as hospitals, prosecutors said. The Joe DiMaggio Children’s Hospital in Hollywood, Fla., received $800,000 in tainted funds, according to the complaint. Meanwhile, Holy Cross Hospital in Fort Lauderdale received $1 million.
The charitable contributions to the hospitals and the donations to political campaigns now are listed as defendants in the in rem forfeiture proceeding, meaning they are considered ill-gotten gains. The hospitals alerted authorities to the donations after news of the scandal broke.
More than $160,000 in political contributions are listed as in rem defendants. The largest benefactor of Ponzi proceeds was the Republican Party of Florida, which received $145,000 in tainted proceeds.
Florida Gov. Charlie Crist received $9,600 in tainted contributions, according to the complaint. Democratic gubernatorial candidate Alex Sink received $6,000 in tainted contributions.
Crist and Sink already have turned over the money, as has the Republican Party, prosecutors said.
Vehicles seized had luxury nameplates such as Bentley, Ferrari, Mercedes, Rolls-Royce, Maserati, Bugatti, Lamborghini, Hummer, BMW, Corvette and Cadillac. A Ford Expedition limousine also was seized.
Multiple Ferraris, Corvettes, Rolls-Royces and Mercedes were seized, according to the complaint. Also seized were marine equipment, including an 87-foot yacht and jet skis.
Numerous bank accounts were seized, including an account at Banque Populaire in Morocco that contained $12 million, prosecutors said. Two other accounts at Banque Populaire were seized, including an account containing $2 million in the name of Ahnick Khalid and an account containing $1 million in the name of Steve Caputi.
Also seized were 304 pieces of jewelry, 16 Pu Pont lighters, sports memorabilia, more than $272,000 in U.S. currency, $80,000 in American Express Gift cards, watches, investment equity and millions of dollars in real-estate holdings.
Everything was purchased with Ponzi proceeds, prosecutors said.