Thursday, April 4, 2013


Filings this week, in connection with the bankruptcy* of the law firm of convicted Ponzi schemer, Florida attorney Scott Rothstein, indicate that the total amount to date of all Ponzi victim claims against TD Bank has now exceeded $330m. The Court has yet to rule on whether there will be, in essence, a cap on future claims against the bank, which was Rothstein's primary financial institution, and through which he perpetrated his $1.4bn Ponzi scheme.

The new settlements are:

(1) $33m to the FEP Victims ( 45 individuals and entities listed in the bankruptcy.
(2) $18.5 to the family of EdMorse, the Florida automobile dealer.
(3) $700,000 to a group consisting of Platinum Estates Inc., Opmonies2 LLC, and Jonathan Brush ( see Case No.: 11-60670-civ-Marra/Johnson (SD FL).

The case continues to provides valuable lessons to all,  in the consequences of failing to identify, and exit, early on, a bank client whose activities appear to be evidence of a Ponzi scheme.
* In Re: Rothstein Rosenfeldt, Adler, case No.: 09-34791-RBR (SD FL Bkcy.).  

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