Hyde in China

Joe Alu steps onto stage of publicity for third time

Tue, 09 Feb 2010 20:36:14 -0500

Thousands of Sun Sentinel readers viewed this video of Joe Alu, bodyguard to Kim Rothstein, when it was first posted last fall on our Broward Politics blog. It was our most popular video on that blog, ever.

Read my latest story about him on the jump.

New photos, new answers, on Moe Sohail crash situation

Thu, 04 Feb 2010 15:34:03 -0500

While the Sun Sentinel awaits the full transcripts of the city's investigation into police Chief Frank Adderley, I offer you a couple of new photographs that have emerged.

These are part of the city's investigatory file, and show Adderley in a pink shirt at the crash scene of cigar store owner Moe Sohail, alongside Scott Rothstein (yellow shirt), who had called him there on his cell phone.

It was a photograph of the two that prompted media attention and the city's investigation.

Now the FDLE also is investigating whether Adderley influenced the handling of the collision.

I asked the city two additional questions: How long was Adderley at the scene?

And what was the reason the driver of Sohail's Bentley, Sarah Merricks, was not cited for speeding, given that a witness said she sped and blew through a red light just before the crash, and also given that the personnel on scene said speed was a factor.

The city's responses are on the jump.

Kim Rothstein will go after pre-Ponzi assets, her lawyers says

Tue, 02 Feb 2010 10:50:55 -0500

Kim Rothstein unloads items from the Princess Kimberly yacht
before it is seized. (Photo by Joe Cavaretta).

Kim Rothstein, wife of Ponzi schemer Scott Rothstein, will seek half of whatever assets they owned before the illegal investment scam began, her lawyer Scott Saidel said.

"She does have a claim to anything pre-Ponzi,'' he said last week.

She came into the relationship in debt. She won't be in debt when the dust settles on this case, Saidel predicted. In fact, she'll likely have an amount that "to the common person'' would not be "an insignificant amount,'' he said.

FDLE takes look at Lauderdale Chief Adderley

Tue, 02 Feb 2010 10:45:18 -0500

The Florida Department of Law Enforcement will take over where the city of Fort Lauderdale left off, investigating Police Chief Frank Adderley to see if his friendship with Ponzi schemer Scott Rothstein led him astray.

The city cleared Adderley of wrongdoing for his involvement at the crash scene of Moe Sohail, a friend of his and Rothstein's. Now FDLE is investigating it, at the request of Commissioner Charlotte Rodstrom and Vice Mayor Bruce Roberts, the former police chief.

Here's the six page summary of the city's probe into the August crash of Sohail.

Mike Morisson, an FDLE spokesman, said the agency opened its investigation Jan. 20 and will take witness statements. If any evidence of a crime is uncovered, the case would be forwarded to the State Attorney's Office, he said. If there is no such evidence, the findings will be reported to the City Commission, he said.

Adderley already admitted he flew on a private jet to a New York Jets game with Rothstein, and failed to report the travel as a gift, like state law requires. He filed a late gift disclosure saying the flight was paid for by Ted Morse, another mutual friend of his and Rothstein's. The city still has open a review of that matter and a look at whether it was the only unreported gift Adderley accepted.

I'm still waiting for all the documents from the city, including all the statements given to the Office of Professional Standards. In the meantime, here are a few things to chew on, on the jump page:

Lauderdale clears Chief Adderley in Sohail crash; FDLE opens new probe

Mon, 01 Feb 2010 19:52:54 -0500

The city of Fort Lauderdale's Office of Professional Standards cleared police Chief Frank Adderley today of misconduct in the crash investigation involving a Scott Rothstein associate.

The city determined "there is no evidence to refute Adderley's testimony'' that he didn't get involved in the police and fire departments' handling of a crash involving cigar store owner Muhammad "Moe" Sohail.

He told city OPS Director Robert Bates that Rothstein, his friend, called him on his cell phone that afternoon, Aug. 21, advising him that their mutual friend, Sohail, had been in a serious crash and was injured. He said he was concerned and went to the downtown Fort Lauderdale crash scene to check on Sohail, whose store he frequented. The crash was a head-on collision not far from City Hall, at Northeast Third Avenue and First Street, by the federal courthouse.

An interesting item in the investigatory pile: one fire lieutenant said he saw piles of cash in large denominations in Sohail's Bentley. He said there were at least six stacks of cash, which he saw Sohail stuffing into a white paper bag. Sohail said he had just been to the bank.

"I looked in the car,'' fire Lt. Tom Connor told the city investigators, "and saw multiple stacks of bills. Wrapped bills, in stacks. ... They were all on the floor and the guy was picking them up and putting them in a bag. ... I was like 'Wow, that's a lot of cash. ... I remember seeing one stack of hundreds.''

Lauderdale Chief Adderley says scrutiny over Rothstein unfair

Fri, 29 Jan 2010 12:31:41 -0500

Fort Lauderdale Police Chief Frank Adderley gave an interview to former city employee Elgin Jones, now a journalist with the South Florida Times, about his relationship with Scott Rothstein, the Ponzi convict.

From left, radio personality "Footy,'' Chief Frank Adderley, Kim
and Scott Rothstein.

Chief Adderley said it's not fair for people to say the police missed "red flags'' about Rothstein's ill-gotten gains.

Here's a link to Jones's interview, which can be viewed on video.

Adderley is under investigation by the city, because of his relationship with Rothstein. For one thing, he flew on a jet to a football game in New York but didn't report it as a gift as the law requires. Rothstein was on the plane but it was owned by Ted Morse, a friend of Rothstein and Adderley's. Adderley filed the disclosure late, after the media brought the flight to light.

"I think we need to look at Scott Rothstein for who he was, and now the guy that he is,'' Adderley told Jones.

"Who he was? He was a successful businessman. He had 70-plus attorneys that worked in his firm. He interacted with charities throughout our city, throughout our county. He dealt with directors of those charities. He dealt with politicians, who he made a number of, had a number of fundraisers and donations to them.
"And I kind of think it's unfair here that the police department is the only person, based on the people that he was in contact with, that should have figured out that he was part of a Ponzi scheme. I find it that the police is definitely an easy target for any type of subject, and I just think that it's unfair that we're being portrayed as the person who quote 'missed the red flag' when no one gave us the red flag.
"No one ever called the police department and said that this guy was conducting an illegal activity. No one contacted Crime Stoppers indicating this illegal activity was taking place in our city. So for someone to say that we missed the red flag and no one showed us the red flag, I think it's unfair.''

Rothstein surrenders all the material possessions that made up his life of luxury

Fri, 29 Jan 2010 11:07:43 -0500

By Peter Franceschina
Sun Sentinel

As part of his Wednesday plea agreement, jailed Ponzi schemer Scott Rothstein agreed to give up all the trappings of the luxury life he once lived.

Tens of millions of dollars in cash, multimillion dollar homes, exotic sports cars, hundreds of pieces of jewelry, his interests in dozens of businesses – assets with an estimated value of between $50 million and $100 million.

And some of those closest to Rothstein also lost some fine possessions, including homes, cars and jewelry.

Rothstein also agreed to forfeit a Brooklyn condominium he apparently bought for his former law partner Russell Adler, purchased in August for $475,000, land records show. Adler is listed in New York land records as the owner.

Here is a rundown on the forfeited Rothstein assets, which will likely be making their way to auction in the coming months to repay victims of the Ponzi scheme:

Cash, $17.9 million, held in various bank accounts, including $15 million Rothstein wired to Morocco before he fled there in late October. More than $250,000 was found in Rothstein’s home.

Eighteen properties in South Florida, including Rothstein’s $6.45 million Isla Bahia Drive home, a Weston home he bought for his chief operating officer, Debra Villegas, for $475,000 and signed over to her in July for $100 and “love and affection” and a $9 million Boca Raton home he bought from car dealer Ed Morse last fall.

Two New York apartments, including one Rothstein bought for $6 million in June 2008 and another he bought for $560,000 in June.

Two side-by-side homes on Narragansett Bay in Rhode Island, bought for $5.6 million.

His 10 percent ownership in the Versace mansion on South Beach.

An 87-foot Warren yacht worth about $5 million and a 33-foot Aqua Riva, which he kept at the dock behind his home, and a 55-foot Sea Ray.

A very impressive car collection:

1990 Red Ferrari F40 coupe; 2009 white Bentley convertible; 2008 yellow McLaren Mercedes Benz SLR; 2007 black limousine Ford Expedition; 2008 Red Ferrari 430 Spider; 2007 silver Rolls Royce convertible; 2006 silver Hummer; 2008 Cadillac Escalade; 1967 red convertible Corvette; 2008 Black Bugatti Veyron EB 16.4; 2008 blue Rolls Royce drophead convertible; 2006 red Ferrari F430 Spider; 2008 Chevrolet Corvette (registered to Rothstein’s uncle, William Boockvor; 2009 Chevrolet Corvette Z06 (registered to former law partner Les Stracher); 2009 blue Maserati GranTurismo coupe (registered to Villegas); 2009 White Mercedes Benz; 2008 Mercedes Benz S65 VR Turbo (registered to former law partner Stuart Rosenfeldt); 2009 red BMW convertible ( registered to Rothstein’s nephew); 2009 Mercedes Benz SLK 350 convertible (registered to Rothstein’s sister); and last but certainly not least, a 2010 white Lamborghini Lp-670sv.

$1.2 million Fidelity stock investments account in Rothstein’s name.

304 pieces of jewelry, including watches, earrings and necklaces.

$80,000 in American Express gift cards.

16 Dupont lighters.

Five watches, to be turned over by former law partner Les Stracher.

Rothstein’s guitar collection, worth an estimated $10,000 to $20,000.

Rothstein also agreed to forfeit his interests in dozens of businesses and corporate entities. He has been held in federal detention since his Dec. 1 arrest. He faces a lengthy prison term at his May 6 sentencing.

Document: Lauderdale Sgt. Greenlaw enrolled in RRA 401(k) profit-sharing benefit?

Wed, 20 Jan 2010 18:10:20 -0500

Staff writer Sally Kestin has this intriguing bit of news:
Fort Lauderdale police Sgt. Steve Greenlaw, coordinator of Scott Rothstein's off-duty guard detail, may have been enrolled in 401(k) profit-sharing benefits at Rothstein's law firm, according to documents in the firm's bankruptcy case.

Greenlaw is under internal investigation by the police department to find out whether he violated city policy when he was working off-duty for Rothstein. Greenlaw was among the 28 officers who guarded Rothstein's house, restaurant and law firm, but he also acted as the coordinator of the detail, scheduling all the officers for the work.

One allegation, lodged by Rothstein bodyguard Joe Alu, is that Greenlaw was employed by Rothstein Rosenfeldt Adler as a driver, and drove Scott and Kim Rothstein twice. Outside employment must be cleared with police officials, and Chief Frank Adderley said Greenlaw did not ask to work as a driver for Rothstein and did not have permission to do so.

Greenlaw’s name is included in a list of RRA employees and family members in a Dec. 4 court filing in the bankruptcy case. It’s a motion by bankruptcy trustee Herbert Stettin to terminate RRA’s 401(k) and profit sharing plan, remove Rothstein as the plan’s trustee and authorize Stettin to select a new trustee.

The plan contained assets of $1.4 million and as of the end of 2008 had 60 participants with money in their accounts.

Police Chief Frank Adderley said Wednesday he was unaware Greenlaw might have been given a retirement benefit from RRA.

Greenlaw also is listed as an unsecured creditor in the Dec. 22 bankruptcy filing of all the schedules. He is listed being owed an unknown amount, which could include wages, salaries, commissions or benefits.

Rothstein photo menagerie

Fri, 15 Jan 2010 12:45:47 -0500

If you had any doubt Scott Rothstein fancied himself a tough guy, take a look at this:

The image above comes from a collage of photos of the alleged Ponzi schemer and his former law partner, Stuart Rosenfeldt, that hung in Rothstein's law office and bore the plaque: "Two Guys and a Law Firm Does a Great Pair of Wacky Bosses Make!"

Rothstein's photos, his political and sports memorabilia, and all of his office furniture and equipment goes on auction Jan. 23 at AMC Liquidators on Commercial Boulevard in Tamarac. There is a lot of buzz surrounding the auction, so we decided to take a sneak peek at what will be going under the gavel.

So here are some amateur shots courtesy of an iPhone.

The auction billboard, from a Rothstein Rosenfeldt Adler house ad:

California Gov. Arnold Schwarzenegger apparently gave Rothstein a bathrobe:

With former Florida Sen. Mel Martinez:

With wife Kim and Dan Marino:

With former Florida Gov. Jeb Bush:

With former vice presidential candidate Sarah Palin:

With Connecticut Sen. Joe Lieberman:

With John and Cindy McCain:

With John McCain and Florida Gov. Charlie Crist:

With New Mexico Gov. Bill Richardson:

With George W. Bush:

An invitation to George W. Bush's second inauguration:

A tribute to Broward Sheriff Al Lamberti:

And finally, the infamous "Scott, you're amazing!" shot:

-- Peter Franceschina

Rothstein bodyguard says Sgt. Greenlaw worked as "driver''

Tue, 12 Jan 2010 16:20:16 -0500

City officials declined to say what policies they are suspected of violating. The allegation by Alu is the first hint at what investigators might be looking at in Greenlaw’s case.

Alu, a retired police officer who works as Kim Rothstein’s personal bodyguard, told the Sun Sentinel that Greenlaw was hired by Rothstein Rosenfeldt Adler.

“They had him on the payroll as a driver,’’ Alu said. Alu has known Greenlaw since he first got into law enforcement. Alu, then a Plantation officer, hired Greenlaw at that agency, he said. He called him “squeaky clean’’ and a “worry wart’’ who wouldn’t have driven for the Rothsteins without permission.

Fort Lauderdale officers are not allowed to work as bodyguards, but Alu said Greenlaw was just a driver, and only drove for the Rothsteins twice.

NEW: City suspends officers who oversaw Rothstein detail

Sun, 10 Jan 2010 11:56:22 -0500

The city suspended two Fort Lauderdale police officers Friday afternoon, under suspicion they violated department policy in their off-duty work for then-lawyer, now-Ponzi-suspect Scott Rothstein.

Sgt. Steve Greenlaw and Officer DeAnna Garcia-Lemieux were put on administrative leave with pay, city officials confirmed Sunday morning. Both were coordinators of Rothstein's off-duty detail, and were each paid 5.5 percent of the overall detail amount, by Rothstein.

"I can confirm they were suspended with pay, and it was for issues arising out of the Rothstein detail,'' Mayor Jack Seiler said Sunday morning.

The suspensions come after weeks of the city and police chief defending their decision to allow high-ranking police officers, detectives, undercover officers and the department spokesman to guard Rothstein's home, restaurant and law firm. The off-duty detail began in April and was yanked on Nov. 2 when the city learned Rothstein might have been running a $1.2 billion investment scam. Federal authorities said in their "information'' backing up Rothstein's arrest that he "utilized funds illegally obtained through the Ponzi scheme to hire members of local police departments purportedly to provide security for [Rothstein Rosenfeldt Adler] and defendant Rothstein's personal residence.'' The document goes on to say that he provided "gratuities'' to high ranking police personnel to "curry favor'' and to "deflect law enforcement scrutiny.''

Seiler has said in recent weeks that the city will never again allow officers to guard a person's home on a permanent basis as was done for Rothstein.

Fort Lauderdale Police Chief Frank Adderley approved the off-duty work for Rothstein in April. By then he'd already been wooed by Rothstein, and had flown to New York in a jet with him to see a New York Jets-Miami Dolphin game, Adderley admitted two weeks ago in a late gift disclosure filed with the state. The jet was paid for by Rothstein pal Ted Morse, Adderley said.

The work at Rothstein's residence was unique; no other person in the city's history hired officers on a permanent, 24-hour basis at their home. Personal bodyguard details are banned in Fort Lauderdale, but Adderley ruled that guarding Rothstein's home was not body guarding. (Click here to see who worked the detail.)

City officials said they could not give details Sunday about what policies the two are suspected to have violated, and whether either of the two traveled anywhere with Kim or Scott Rothstein.

Fraternal Order of Police union President Jack Lokeinsky said he was notified of the suspensions but couldn't comment further.

Rothstein said he wanted the security because the murder of one of his law firm lawyers Melissa Britt Lewis rattled him and his wife.

"Until you’re in the position that someone close to you is murdered by someone else that you trusted, you don’t understand how it turns your life upside down,'' he said last summer. "You can call me whatever you want. You can call me paranoid, you can call me extra security conscious. .. But at the end of the day no one close to me is going to be killed, raped, attacked, harmed in any way so long as I have the ability to provide the extra protection.''

When he hired the officers in April, Lewis's suspected murderer was already behind bars awaiting trial. Her murder was a year prior, in March 2008.

Rothstein said he didn't know the officers who guarded his home, except for one.

"I couldn't tell you,'' he said when asked who guarded there. "Right now I could name one officer, Steve Greenlaw.''

On the jump: Our story from this summer, questioning the off-duty detail.

Prosecutors: Some Rothstein coworkers may face criminal charges

Fri, 08 Jan 2010 10:34:46 -0500

Federal prosecutors investigating Scott Rothstein's alleged $1.2 billion Ponzi scheme say his defense attorney is not a target of the probe but that other former employees of Rothstein's law firm have "apparent criminal culpability."

After Rothstein's defense attorney, Marc Nurik, announced in court Wednesday that Rothstein plans to plead guilty in the racketeering and conspiracy case, U.S. District Judge James Cohn asked prosecutors to reveal whether Nurik -- a former attorney in Rothstein's firm -- had criminal exposure in the investigation.

The judge wanted to know if Nurik was under invesetigation, because that could pose a conflict of interest if he continued to represent Rothstein, and set a hearing on the matter for next Wednesday. In a court filing late Thursday, prosecutors said Nurik is not a subject of the investigation.

"Mr. Nurik is neither a target nor a subject in the ongoing investigation which gave rise to the pending charges against the defendant," Assistant U.S. Attorney Lawrence LaVecchio wrote. "In fact, the government is currently unaware of any information which would subject Mr. Nurik to any potential criminal liability in any pending investigation."

Rothstein is accused of running the massive swindle selling bogus legal settlements to investors since 2005. Prosecutors alleged in their Dec. 1 racketeering charges against Rothstein that his now-bankrupt Rothstein Rosenfeldt Adler law firm in downtown Fort Lauderdale was the criminal enterprise he used to carry out the scheme.

Prosecutors did say in their filing that Nurik may have two potential conflicts of interest that must be waived by Rothstein at the Wednesday hearing.

"As a former employee of RRA, which has been designated as the Enterprise through which criminal conduct was conducted herein, Mr. Nurik has, at a minimum, professional relationships with other employees of RRA who do have apparent criminal culpability in the case, which could conceivably interfere with the undivided loyalty that Mr. Nurik owes to the defendant," LaVecchio wrote.

"Secondly, because Mr. Nurik was an employee at RRA, he may personally be in the position to provide exculpatory evidence on the defendant’s behalf, which would be prohibited if Mr. Nurik persisted in his representation of the defendant."

Nurik has said he has no conflict representing Rothstein, who is scheduled to enter a guilty plea to unspecified charges on Jan. 27. Rothstein is charged with five felonies punishable by up to 100 years in prison.

-- Peter Franceschina

Key players to give bankruptcy depositions

Thu, 07 Jan 2010 12:41:50 -0500

Some key players in the Scott Rothstein $1.2 billion Ponzi saga may soon be telling what they know under oath and producing any records they have.

The trustee for the bankruptcy of the former Rothstein Rosenfeldt Adler law firm issued 15 subpoenas for depositions late Wednesday, the same day Rothstein's attorney announced in court Rothstein would plead guilty Jan. 27 in his racketeering and conspiracy case.

The bankruptcy lawyers want some of Rothstein's closest associates and investors to sit down in late January and early February to give sworn statements.

Those who will be getting the subpoenas include Rothstein's wife, Kim; Debra Villegas, the law firm's chief operating officer; Irene Stay, the law firm's chief financial officer; Amy Howard, a law firm staffer; Ingrid Sahdala, a law firm staffer; William Boockvor, Rothstein's uncle and a law firm staffer; Marc Nurik, Rothstein's criminal defense attorney; and Steven Caputi, owner of Cafe Iguana (where Rothstein had an ownership interest).

Subpoenas also were issued for Rothstein's biggest investor, Fort Lauderdale businessman George Levin, whose Banyon investment funds put $775 million into the Ponzi, according to bankrupty records; Frank Preve, a Levin business associate; and Michael Szafranski, a financial advisor hired by investors to verify Rothstein's legal settlements who also had an investment fund that put $31 million into the scheme, according to a civil suit and bankruptcy records.

-- Peter Franceschina

Lauderdale Chief Adderley (finally) answers our questions

Wed, 06 Jan 2010 22:03:27 -0500

Fort Lauderdale Police Chief Frank Adderley answered our questions about his dealings with Scott Rothstein, after a prolonged silence. (See the full interview story below.)

Here and on the jump are most of our written questions, and his answers, the way they were written in the e-mail (casually punctuated and abbreviated, in other words ... ):

QUESTION: When you were in new york at the jets game, did Rothstein pay for lunch for the group, at a place called Harry Chippiano’s or something like that, the tab being close to $4,000?
ANSWER: I’m not sure of the name of the restaurant and who paid for the bill. I ordered a drink and a cup of coffee and left enough money to cover my order and tip.

Q: Did you ride in a limo? paid for by Rothstein?
A: No, I rode in an SUV that I was led to believe was arranged by Ted Morse.

Q: Did you go to a cigar shop after lunch and did Rothstein pay for cigars for you there?
A: No, we went to the Cigar Shop before the restaurant. I had cigars before I entered the shop. No, Rothstein didn’t pay for my cigars.

Q: did the value of any of that exceed $100?
A: Not that I’m aware of.

Lauderdale Chief Adderley: I was fooled, but I'm not alone

Wed, 06 Jan 2010 19:06:38 -0500

When Fort Lauderdale Police Chief Frank Adderley looked at Scott Rothstein, he saw a great man who shared his money with charities and even homeless people. Powerbrokers across town fawned over the guy. Now Rothstein’s a pariah. And Adderley complains their friendship is
being unfairly judged from the vantage of hindsight.

Rothstein “was a very good con man,’’ the chief said this week. “… I’ll tell you right now, was I fooled by the guy? Yes. Yes.’’ But, he asked with indignation, “I’m the only guy that was fooled by him?’’

Adderley spoke this week about his dealings with Rothstein, after a three-week silence to the Sun Sentinel’s questions. (Click here for a memory refresher on the "Escape Via The Back Stairwell'' incident). He complained that police are an “easy target’’ for criticism in this case, and he believes he’s been unfairly singled out by second-guessers. He also explained his presence at a crash scene involving a Rothstein friend, said he accepted nothing of value from Rothstein, and affirmed that he has done nothing wrong.

Adderley is under administrative investigation by the city because of the crash scene incident. He also has talked to the Federal Bureau of Investigation, but said he’s been told he’s a witness, not a target. The Florida Department of Law Enforcement said it hasn’t decided yet whether to independently investigate the chief’s dealings with Rothstein, who is in detention on charges he ran a $1.2 billion Ponzi scheme during the time he was befriending Adderley and other police officials in town.