Tuesday, August 4, 2015


The cases involving the massive Ponzi scheme of Fort Lauderdale attorney Scott Rothstein continue, five years after Rothstein himself went off to serve a 50-year sentence.  The trial of former TD Bank Regional Vice President, Frank Spinosa, is fast approaching, on October 5th. Spinosa is accused of facilitating, and enabling the Ponzi scheme, using his position as senior bank officer to perpetuate the fiction that investor profits were on deposit, and safe & secure.  He had been scheduled to go to trial earlier, but his counsel asked for, and received, additional time to review the evidence, and prepare for trial.

 The Court's July 21 Order stated that, if he enters into a plea agreement, it is to be completed and filed by September 25. Considering that there are a number of Rothstein figures, having pled guilty, or already serving their sentences, it is likely that their testimony will be damning, and effective. The prudent thing to do here may be to plead, but the final decision rests with the defendant, who could receive up to 60 years, if found guilty by a jury. Spinosa reportedly rejected a pre-indictment offer of only five years.

The question arises: Will Mr. Spinosa plead out, and implicate senior TD Bank management in the bank's role in maintaining, and facilitating, Rothstein's Ponzi scheme ? Has the US Attorney's office targeted additional bankers ? If so, Spinosa's first-hand knowledge, regarding who, if any, of senior bank management, knew about, permitted, or otherwise assisted in the Ponzi, could result in further indictments, further up the ladder of bank management. To date, there has been no information publicly available on this subject; will Spinosa implicate his superiors ? We cannot say, but we will be watching.

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