EFTA00744334.pdf

From: ' To: "jeevacationggmail.com" <jeevaeation(ref,grnail.com> Subject: Rosenfeldt-14 RRA partners still under investigation Date: Tue, 06 Jul 2010 20:44:40 +0000 Friday, July 2, 2010 I Modified: Tuesday, July 6, 2010 Rosenfeldt asked about sex parties South Florida Business Journal - by Paul Brinkmann Stuart Rosenfeldt, former law firm partner of Ponzi schemer Scott Rothstein, confronted questions Friday about the wild ways of key attorneys at the firm. Attorneys working on the bankruptcy of Rothstein Rosenfeldt Adler asked Rosenfeld( if he was aware of "raucous sex-oriented parties," "a significant amount of womanizing," "drug use by RRA partners" and a paid trip to the Atlantis resort in the Bahamas where the firm "paid for partners to gamble." The questions were only questions, but they were framed as though they were facts that Rosenfeld( should have been aware of. Rosenfeldt declined to answer, citing his attorney's advice that he take the Fifth Amendment. Rosenfeldt's attorney, Bruce Lehr, said he knew of no factual basis for the allegations. Information also came out that suggested Rothstein pumped members of his former law firm to contribute money to firm coffers in unusual ways. "I want us all to be rich," Rothstein wrote in an e-mail to Rothstein Rosenfeldt Adler shareholders, including the firm's president, Rosenfeldt. "I am unhappy with current deposits. I want additional deposits of $250,000 by this weekend, in addition to what I am depositing." The e-mail was read aloud during Friday's daylong deposition of Rosenfeldt. When asked about it, Rosenfeldt, citing the Fifth Amendment, declined to answer. Rosenfeldt also cited the Fifth Amendment on questions about a single check he allegedly received for $3.9 million. "Was this for participating in illegal activity with Scott?" asked Chuck Lichtman, the bankruptcy attorney taking the deposition. Attorneys handling the bankruptcy are trying to find any ill-gotten gains in an effort to pay back investors who lost money to the scam. Lichtman cited another e-mail, without giving the date, in which Rothstein directed staff to cut a check to Rosenfeldt for $62,000, and then directed Rosenfeld( to write a check for $61,500 to Kendall Sports Bar, in which the law firm allegedly held an ownership interest. Rosenfeldt declined to say anything about the e-mail or the alleged check. "Did you understand you had an interest in Kendall Sports Bar?" Lichtman asked. "At some point I was told I had an interest, yes," Rosenfeld( answered. Rosenfeldt said attorneys who were cleared by the Florida Bar this week were generally partners or associates at the firm, while 14 who remain under investigation by the Bar were shareholders at the defunct firm. Bankruptcy attorneys have alleged that Rosenfeld( received millions of dollars from the proceeds of Rothstein's $1.2 billion Ponzi scheme. Rothstein was sentenced last month to 50 years in prison. Rosenfeldt was accompanied by three of his attorneys — Lehr, Mitchell Fuerst and Luis Salazar. During a break, Lichtman commented to reporters: "He has money to pay three lawyers, but not to pay us." Rosenfeld', who is still a licensed, practicing attorney, maintained during his deposition that he was not a 'money guy" and he trusted Rothstein to manage financial affairs. He declared under oath: "If you hired me to manage your firm, it's pretty much assured it would go bankrupt. I can't really read a balance sheet." Lichtman asked if that amounted to a breach of fiduciary duty under rules of the Florida Bar. Rosenfeldt disagreed. He took the Fifth Amendment in response to most questions, saying that the U.S. Attorney's Office was investigating his actions, especially regarding checks he signed for payment of political donations to Republicans such as John McCain. Rosenfeldt said that, at first, that he trusted Rothstein because he had run small law firms before and seemed successful. But, he added, "the important thing is he had a lot of capital." Rosenfeld' maintained total ignorance about RRA's numerous trust accounts, which Rothstein used to launder money, saying: "I don't know. What am I going to do, hire a forensic accountant to audit my own law firm?' He also acknowledged that he bought numerous rare turtles at a pet shop. When asked "Where are all the reptiles you bought?" he answered "They're in my dining room." EFTA00744334