Israelis in Florida fall victim to fraud scheme
Jewish lawyer Scott Rothstein suspected of running Ponzi scheme to tune of $1 billion. FBI holds press conference, asks victims of deceit to contact agency
WASHINGTON - Dozens of Israelis fell victim to a Ponzi scheme in Florida, two Israeli sources in the state told Ynet. The Federal Bureau of Investigation has been investigating a scheme in which Jewish lawyer, Scott Rothstein, 47, is suspected of scamming his clients out of large sums of money by promising huge profits on investments in legal settlements through his law firm Rothstein Rosenfeldt Adler.
According to FBI sources, the suspect is likely to have bilked clients out of more than $1 billion.
News that Israelis were defrauded in the scheme have been circulating by word of mouth within the community in the past few days. Recently, the Miami Herald published for the first time the name of an Israeli involved in the scheme.
Attorney William Salim, who is representing Ovadia Levy and his wife Rachel, said in court Thursday that the couple were scammed out of $15-20 million dollars. The Levy family owns Renato Watches, a designer watch company.
``We were friends of his in the community,'' said Daniel Mink, CEO of Renato Watches and brother-in-law of Ovadia Levy. ``A lot of people were investing with him. It seemed very legitimate. . . . Our family is definitely a victim.''
Rothstein is suspected of not working alone in the massive Ponzi scheme. The Miami Herald reported that the scam started in 2005. Investigations started in late October when Rothstein left for a vacation in Morocco.
Rothstein's investors, law firm and law clients have accused him of ripping them off by selling fabricated employment-discrimination settlements. The IRS is looking at American and foreign bank accounts to determine where Rothstein may have stashed the money he collected, and how it was spent to support his lavish lifestyle.
Rothstein said in a interview with Fox News that he "made a very, very serious mistake'' and promised "to pay back every penny."
No legal charges have been made again Rothstein as of yet, and he has not been arrested.
Asked why the FBI had not yet arrested Rothstein, Special Agent in Charge John Gillies responded: ``We are conducting this investigation in a timely manner, but we will not be rushed. We will be thorough, and we are far from over . . . I'd like to let the public know this case is going to take time.''
The FBI asked that victims of the fraud come forward to help in the investigations, either by phoning them or sending them an email.
