Tuesday, November 10, 2009

Lawyer files involuntary bankruptcy petition in Rothstein case

An attorney has filed a petition on behalf of three investors to force Fort Lauderdale lawyer Scott Rothstein's law firm into involuntary bankruptcy.

Attorney Jeffrey Sonn filed the petition Tuesday afternoon in federal court. He filed it on behalf of three investors who say they lost money through Rothstein's alleged investment scheme: Bonnie Barnett, who lost $500,000; Aran Development, $345,000 and Universal Legal, $7,800, according to the petition.

Stuart Rosenfeldt, who is now the CEO of Rothstein Rosenfeldt Adler, could not be reached for comment Tuesday.

Rothstein -- who has not been charged criminally -- has been accused by investors of stealing hundreds of millions of dollars and by his law partners of wiping out their Fort Lauderdale firm. He is staying at an undisclosed location and could not be reached for comment.

The petition asks the court to appoint a Chapter 11 trustee to investigate Rothstein's alleged Ponzi scheme and to help investors reclaim losses.



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