Living Rent Free, The Ponzi Way

Scott Rothstein’s mega ponzi scheme has left many questioning the way federal prosecutors are handling the convicted felons multi-million dollar properties.

Recent outrage has surfaced surrounding Rothstein’s wife, Kimberly, who is still managing a number of her husband’s houses. She currently lives rent-free in one of them and rents out the rest.

According to a recent article published in the Sun Sentinel, “It has recently come to the attention [of the lawyers] that the government has apparently delegated its duty to properly manage and safeguard certain of the property subject to forfeiture to Scott Rothstein’s wife – Kimberly Rothstein,” wrote Paul Singerman, one of the attorneys handling the case for the bankruptcy trustee.

“More specifically, the [lawyers] have learned that the government has permitted Kimberly Rothstein to live rent free in one of the forfeited properties and to continue to rent out other properties to tenants,” wrote Singerman.

Many people familiar with the case are screaming injustice and want the criminal and bankruptcy courts to hold joint sessions in order to best figure out a way to forfeit the assets while returning as much money as possible to the ponzi scheme victims as well as Rothsteins former creditors.

Last Thursday, attorneys questioned Kimberly Rothstein under oath. The full details of those questions have not yet been released to the public, however, it was reported that Rothstein made a number of allegations against the government including their failure to secure, and pay utility bills on, several properties. These claims suggest that the Government has directly caused some of the properties to deteriorate in value.

“Scott Rothstein pleaded guilty to 5 felony counts, and he faces up to life imprisonment when he is sentenced on May 6,” according to the Sun Sentinel.