Authorities Charge Two More Rothstein Employees in $1.4 Billion Ponzi Scheme

Federal prosecutors unveiled charges against two more former employees of convicted Ponzi schemer Scott Rothstein's now-defunct law firm Rothstein Rosenfeldt Adler ("RRA"), accusing them of playing a role in Rothstein's massive fraud.  Marybeth Feiss, Rothstein’s former administrative assistant, and William Boockvor, who handled bookkeeping and other administrative duties, were charged in two separate criminal informations.   Feiss was charged with conspiracy to violate the Federal Election Campaign Act and to defraud the United States, while Boockvor was charged with conspiracy to commit wire fraud.  Each faces up to five years in prison under the conspiracy charge.  

Rothstein's scheme involved purported settlements of various sexual harassment, discrimination and whistleblower lawsuits in which investors were solicited to fund the initial lump-sum to the settling plaintiffs.  In return, investors were to receive the scheduled installment payments owing under the settlement agreements, which were supposedly paid into trust accounts at TD Bank controlled by Rothstein and his associates.  Boockvor, who was referred to in the charging document as "Uncle Bill" as he is Rothstein's uncle, was accused of providing employees of TD Bank with fraudulent bank balance statements that falsely reflected the balances of trust accounts held by RRA at TD Bank.  Boockvor would also help TD Bank employees in preparing envelopes and correspondence stating that the balances were accurate when, in fact, they were not.

As Rothstein's former administrative assistant, Feiss' duties included assistance in organizing events, which included political fundraising events.  During the 2008 Presidential Election, Rothstein, with the assistance of Feiss, hosted several events at his house and elsewhere in which he solicited campaign contributions towards John McCain's campaign.  Rothstein enlisted many of the attorneys and staff at RRA to make campaign contributions at these events.  Feiss, at the direction of Rothstein, later reimbursed those attorneys and staff making campaign contributions in violation of federal election campaign laws.  Through these numerous donations, RRA was the top contributor to two of McCain's fundraising entities, McCain Victory 2008 and McCain-Palin Victory 2008, and the top total contributor to the joint fundraising committees for McCain.  As a result of Rothstein's clout with the Republican Party, he was later named a delegate to the 2008 Republican National Committee and a member of the Judicial Nominating Committee.

The decision by prosecutors to file charges through the use of a criminal information is also indicative of the possible outcome of the case.  The move to bypass a grand jury indictment and instead file an information suggests that Boockvor and Feiss intend to cooperate with the government or are in the process of negotiating a plea deal.  The charges against Boockvor and Feiss bring the total number of people charged for their role in Rothstein's scheme to eight - and according to U.S. Attorney Wilfredo A. Ferrer, "we are not done yet."
A copy of a Justice Department press release is here.
A copy of the charging document filed against Feiss is here.
A copy of the charging document filed against Boockvor is here.