FINANCIAL ADVISER WHO DECEIVED INVESTORS IN ROTHSTEIN PONZI SCHEME TO PLEAD GUILTY

Michael Szafranski

Michael Szafranski, the independent financial adviser who was supposed to examine, and qualify, Scott Rothstein's bogus investments for clients, but ended up taking money from Rothstein, and steering clients to what he knew, or should have known, was a Ponzi scheme, has indicated that he will change his plea to guilty, in US District Court in Florida. it is alleged that he concealed material information about the safety and validity of the Rothstein "investments" in structured out-of-court settlements, and profited from his participation in the massive fraud.

It had been originally anticipated that Szafranski would actually go to trial in his case, but delays in the setting of the trial date raised the possible issue as to whether his attorney was negotiating a plea with the US Attorney's Office. Whether he will be compelled to disgorge the reputed millions of dollars paid to him by Scott Rothstein is not known.

 The case represents a teachable moment in any investment: insure that your financial investment adviser in truly independent, that he does not receive any monetary benefit from referring specific investments to you, and that he does perform due diligence, or enhanced due diligence, and provides you with evidence of this. Remember, Szafranski originally was engaged by a hedge fund to verify the Rothstein investments.

You can be proactive in checking out your adviser;  Is he living above what you believe his means is ? Has he purchased substantial real estate holdings, over and above what he should be capable of buying ? Is he driving a Rolls or Bentley ? Know your adviser, if you trust him with your investment decisions.