A former name partner of the law firm where Scott Rothstein masterminded his $1.2 billion Ponzi scheme was sentenced to a 33-month prison term for his role in the fraud. Stuart Rosenfeldt, 59, received the sentence after U.S. District Judge Marcia Cooke rejected his pleas for a downward departure from the 33-41 month range recommended by the U.S. Probation Office. Rosenfeldt pleaded guilty earlier this summer to a single count of conspiracy to commit bank fraud, violate the civil rights of a prostitute, and make illegal campaign contributions. Rosenfeldt was given until January 5, 2014 to report to begin serving his sentence.
Despite insinuations by Rothstein that Rosenfeldt had to have been aware of his massive scheme, prosecutors never alleged that Rosenfeldt was involved or aware of the scheme. However, Rothstein's extensive participation with authorities implicated Rosenfeldt in other criminal acts, including (1) making hundreds of thousands of dollars of illegal campaign contributions; (2) participating in a check-kiting scheme to cushion the firm's finances when needed; and (3) the use of law enforcement officers to force a prostitute and her boyfriend to leave Florida after Rosenfeldt believed the prostitute would expose their relationship.
At its peak, Rothstein's firm employed seventy lawyers - the vast majority of whom have not been accused of any wrongdoing in connection with Rothstein's scheme. Indeed, many of those lawyers lost their jobs when the firm declared bankruptcy after Rothstein's scheme unraveled. Rosenfeldt marks the fifth former RRA lawyer to be convicted, and joins over two dozen other individuals that have been convicted for their role in the scheme.
According to Chuck Malkus, who has covered the Rothstein saga closely and authored the book, The Ultimate Ponzi: The Scott Rothstein Story, Rosenfeldt is the 26th defendant to be sentenced as a result of Rothstein's arrest and subsequent cooperation with authorities, and prosecutors face a Halloween deadline to charge any others linked to the fraud under the five-year statute of limitations. According to Malkus, "next to be indicted will be the TD Bank executives and the feeders."
Previous Ponzitracker coverage of the Rothstein scheme is here.