A federal judge recently ordered convicted Ponzi scheme architect Scott Rothstein to repay $363 million of restitution payments to his victims. Unfortunately, Federal prosecutors have cast doubt on the investors recovering much more than pennies on the dollar of the money Rothstein stole in a scheme involving the sale of rights to bogus legal settlements – the largest Ponzi scheme ever perpetrated in South Florida.
Recent news stories indicate that prosecutors believe there may be an estimated $25 million available to resolve claims made by Rothstein’s victims. This figure pales in comparison to the total amounts invested with Rothstein directly, or through the Banyon affiliated entities.
While the Receiver is expected to recover some additional money, given the complexity of the matter, the expected operating expenses of the receiver and additional professional fees will further deplete the estate and leave little at the end for Rothstein’s victims.
The law firm of Blum Law Group represents several investors that purchased the fraudulent Banyon investments by recommendation of a third party brokerage firm and investment adviser. If you invested money in Banyon notes by recommendation of a financial advisor, broker or other third party professional, you may be able to recover your losses by pursuing litigation against the third party. Contact Blum Law Group for a no-cost consultation.