In a victory for prosecutors, a federal district court judge agreed to delay the deposition of Florida Ponzi Schemer Scott Rothstein sought by the trustee liquidating Rothstein's failed law firm. District Court United States Bankruptcy Judge Raymond Ray had ordered prosecutors to make Rothstein available for questioning on the trustee's motion, who faces a two-year statute of limitations to file so-called clawback lawsuits to recover funds for investors. District Court Judge James Cohn sided with prosecutors, who opposed the trustee's request to depose Rothstein on the basis that allowing Rothstein to answer questions could jeopardize ongoing criminal investigations that were close to culminating in additional indictments.
Notable about the government's objection to the trustee's request was the caveat that, while opposing the trustee's request, prosecutors had offered instead to provide the trustee with information he might be seeking from Rothstein. In the hearing held Friday in South Florida, it was revealed that the court-appointed trustee overseeing the process, Herbert Stettin, had reached an agreement to interview the prosecution, rather than Rothstein, in association with his ongoing investigation.
Rothstein, sentenced to 50 years in federal prison, has been cooperating steadily with the government since after his arrest in hopes of winning a reduced sentence. His cooperation has been rumored to be extensive, with some reports suggesting that he has been instrumental in providing information on associated organized crime syndicates.