EFTA01079863.pdf

a ce. 4A44 ROTHSTEIN FALLOUT Ruling could affect 29 suits Am Trustee battles bank over answers from firm's ex-officer b John nacenti After kick-starting a fight for the de. position of scarrister Sam Rothstein. the lets court-appointed bankruptcy trustee for his defunct law finn pined the skirmish liresday in a battle over the firm's COO Debra Villegas' proffer to iliVeSt)r attor- neys. Attorney John (*noses°, represent- ing the Erin's bankruptcy trustee, said he is afraid opening the proffer would have implications fur the 29 elawback lawsuits filed on behalf of investors by altering sentiment talks and the ability to get proffers in those rases. Vullegas has been sentenced to 10 years m prison for heaping Rothstein fleece investors by forging documents in a Si .2 billion settlement financing scheme. He received a SO-year sen- tence. Ile: attorney also offered answers to questions from imintorsrcpresented by the Fort Lauddale law Rim Conrad & Scherer in a lawsuit against thini par- ties in Broward Circuit Court The prof- fer doesn't wave the Fifth Amendment warnI *96 ngim against self-incrirnination but is of. Former COO Debra Magna.% given a Anal ten disowerabk by opposing parties. 10-year priSedl sentence She told her sentencing judge she would assist in the recovely of assets -to get at the work product and thought o proses of its adwirsary.' oil for investors but is refusing to cooperate with one of Rothstein's fonrer banks. DeMaria told Ray all his client wants Coral Cabin-based Gibraltar Pnvate to see is /ilegal MIMS. not the ques. Bank &Int.< tans posed by Conrad & Scherer Gibraltar, which wants the tillegas 1 don't believe answers by a witness proffer. is one of many targets of the will ever be work product: he said litigation in state court and a defendant • Villegas attorney. Robert Stickney of In a dawback suit filed by bankruptcy Miami. has said ho wants to protect beet tr ance Herbert Stettin client because she could face criminal 'The tusute and Conrad & Scherer charges in state court or other federal are trying to act hke tuner Grote; stud courts. But he said he knows ofno other Gibraltar attorney Joseph DeMaria. a criminal inwsnigations. partneratiewCardenas in Miami- They An ancillary issue at the hearing was are trying tin act like they have the same the U.S attorney's objection filed Friday right to do these proffers as the govern- to allowing Rothstein to be questioned by ment does. but they do not civil atter leis. The US. attorney's office U.S. Bankruptcy Judge Raymond said it is preparing cases against more Ray earlier this month ordered Vilegas than the six people already charged and la answer foundational questions for doesn't want the investigation jeopar Gibraltar. but Conrad & Scherer filed dized by evil depositions that could alert a motion for an emergency hearing to would-be defendants. pectic. µhat it said was work product 'It is difficult to predict with exac- in antitpation Gibraltar would renew titude when the proposed indidment its motion for the full proffer win be returned. but such indictment Is Gibraltar is mulling over whether to anticipated within the next SO, months; renew the motion for the rest of her an- prosecutors wrote Friday in their eke( swers after learning this week that she tions to a Rothstein deposition. is not under any investigation by other Prosecutors also said to a vague foot- law enforcement note that they wouldn't grant Stettin's At the hearing on the emergency mo- request for limited questioning of tion Tuesday. Genovese said a ruling in Rothstein but would help. favor of Gibraltar would set a precedent 'Thegmemment isprepuedtornake for third patties to request work product accommodations to the trustee which from Stettin. MIS would jeopardize the wile enable him to mantell of the ithr- delicate bargaining with others involved mabon necessary to his carrying out his Li the Pont scheme and at the law firm responsibiiities.' the response reads who are targets of federal investigators Stettin said the dock is tacking on the. 'We have great concern.' said November deadline to file adversarial Genmese.a partner at Genovese Johove 'awaits He has said he might file place- & Batista in Miami. holder lawsuits that could be expanded His objection got Rays attention. and later against people who profited from he allowed Conrad & Scherer to triter Rothstein's scheme. vene tn Gibraltar's action. Ray said he DeMaria said outside coup that wanted briefs from Stettin on the legal prosecutors arc offering what would issue because more defendants are ex- constimte *a secret meiging; which pected Ray warned against in recommending Attorney Jun Silver. a partner at Rothstein be made available. Conrad &Scherer. told Ray that Gibraltar Sohn hand can be reached at (305) is not interested in Alleges' answers but 347408. EFTA01079863