Feds seize Ferrari, boats, other assets from Fla. lawyer in multimillion-dollar fraud probe

Feds seize assets of Fla. lawyer in fraud probe

FORT LAUDERDALE, Fla. — Federal agents began seizing assets Monday of a lawyer suspected of orchestrating a multimillion-dollar fraud scheme, including his bright red Ferrari, boats and bank accounts.

FBI and Internal Revenue Service agents spent much of the day taking inventory at the $6.4 million home of attorney Scott Rothstein, where several of his luxury cars and boats are kept. Assets are typically seized in fraud investigations so they may later be sold to repay wronged investors.

Rothstein, 47, has not been charged with a crime. But several investors claim he has bilked them out of $100 million or more by promising huge profits on investments in legal settlements through his law firm Rothstein Rosenfeldt Adler.

Rothstein’s attorney did not immediately return a telephone call seeking comment Monday.

The seizure warrants, described by a federal law enforcement official on condition of anonymity because of the ongoing investigation, are sealed in federal court. News photographers captured images of Rothstein’s Ferrari being towed away by agents, and several were posted outside his ritzy home for much of the day.

One bank used by the law firm, Gibraltar Private Bank & Trust, issued a statement saying a deal involving a Rothstein company was put on hold. The Rothstein entity, Bahia Property Management LLC, had purchased 5 percent of Gibraltar, but the deal will be frozen pending the outcome of the investigation.

Three of Rothstein’s boats were seized, according to Alayna Gossan, spokeswoman for National Liquidators — the same company that is handling the auction of disgraced financier Bernard Madoff’s yacht and two other boats. Gossan said Rothsteins’ boats seized on behalf of the IRS include an 87-foot Warren yacht, a 33-foot Aqua Riva and a Sundancer vessel, Gossan said.

Meanwhile, the court-appointed receiver looking into finances at the law firm told a judge Monday that he’s getting access to many of the necessary documents regarding Rothstein Rosenfeldt Adler accounts at TD Bank. The bank’s attorney, Glenn Goldstein, said the documents would be turned over in full in about three weeks.

Broward Circuit Judge Jeffrey Streitfeld also said he expects “mutiple claims from multiple lawyers” representing investors claiming huge losses. One of those attorneys, William Scherer, said he expects a substantial amount of Rothstein’s assets will be recovered eventually.