- In this July 27, 2009, photo, Scott Rothstein is shown in his former office.
- Associated Press
More than four years after Scott Rothstein’s $1 billion-plus Ponzi scheme came to light, a bitter turf war between representatives of his fraud victims and his creditors has finally been resolved.
A recently reached settlement between federal prosecutors and bankruptcy officials should bring an end to a long-running fight over how to divvy up the fruits of Mr. Rothstein’s fraud among fraud victims and creditors of his now-defunct law firm.
Ever since Mr. Rothstein’s arrest and the bankruptcy filing of his Florida law firm in late 2009, prosecutors and bankruptcy lawyers have bickered over whether Mr. Rothstein’s luxury cars, watercraft, jewelry, cash, real estate and other assets were his personal property or property of the law firm.