Disbarred Fort Lauderdale, Fla. lawyer Scott Rothstein pleaded guilty to felony Ponzi scheme charges today, admitting that for approximately five years, he engaged in approximately $1.2 billion dollars of fraudulent and bogus investment schemes.
According to the plea agreement (you can read it below), Rothstein admitted that he engaged in a criminal racketeering scheme to use his position as a lawyer and law firm Rothstein Roenfeldt and Adler, P.A.'s ('RRA') purported success "and his standing in the community to lure potential investors in order to convince them to" invest in non-existent sexual harassment and whistleblower cases. He falsely told investors that "confidential settlement agreements" could be bought pre-litigation, i.e, before any lawsuit was ever filed.
In reality, no such clients or pre-litigation cases ever existed.