Wednesday, August 21, 2013


Final destination
The lawyers for Scott Saidel, Kimberly Rothstein's personal attorney, who is awaiting sentencing for his involvement in efforts to hide assets of the Ponzi scheme, are trying to reduce his offense level, and their motion reveals another important reason why professionals, including bankers, must discover, early on, any Ponzi schemers in their client base. Otherwise, they may face enhanced penalties, due to what are referred to as "Special Skills."

Saidel, who had pled guilty to conspiracy to launder money, obstruct justice, and tamper with witnesses, has argued, through his counsel, that he did not utilize Special Skills to move the money, and that he advised his client, Kimberly Rothstein, not to ask her imprisoned husband, Ponzi schemer Scott Rothstein, to lie under oath. Saidel says he told Kim not to do that. Apparently there is a dispute over  who said what to who, and when. Remember, a friend of Kim Rothstein is also a defendant in the case, and contesting the facts as the lawyer has related them.

Now we see how differences in the memories of the Ponzi players, and their attorney, who is now also a defendant, complicate the amount of prison time that the attorney may receive. Whether the lawyer has altered the true facts, in a self-serving manner, to minimize his involvement, and therefore, potentially, his sentence, is not known, but you as a professional should never facilitate any criminal conduct that you know to be occurring, lest you be facing Federal Prison time, like Mr. Saidel.

If you have any suspicions that a client is engaging in a Ponzi scheme, confirm your facts through independent investigation, and take immediate action, in line with your lawyer's advice, to disengage from the client, and,  when so advised, disclosing what you know, in the appropriate forum , or to the relevant agency.

1 comment:

  1. What a good blog you have here. Please update it more often. This topics is my interest. Thank you. . .


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