Corporate Fraud

University of Miami Scandal: Sen. Joe Abruzzo Asks Florida Attorney General to Investigate the NCAA

State Sen. Joe Abruzzo has jumped headfirst into the NCAA-versus-UM fracas.

Kim Rothstein Pleads Guilty to Felony Charge

Ponzi schemer Scott Rothstein's wife, Kim Rothstein, pleaded guilty on Friday on her conspiracy charge to commit money laundering after it was discovered that she and her pals concealed more than $1 million worth of jewelry from the federal government, including a 12.08-carat diamond ring worth 450 ... More >>

Scott Israel Suspends Cops Tied to Scott Rothstein

Newly minted Broward Sheriff Scott Israel isn't screwing around. First he gets into office and starts firing people willy-nilly, and now this. Israel has suspended Broward Sheriff's Officers Lt. Dave Benjamin and Det. Jeff Poole. The reason for the suspensions: The Scott Rothstein effect.

Kim Rothstein Will Plead Guilty to Felony Charge

Ponzi schemer Scott Rothstein's wife, Kim Rothstein, was charged in September with conspiracy to commit money laundering after it was discovered that she and her pals concealed more than $1 million of jewelry from the federal government, including a 12.08-carat diamond ring worth 450 grand. Prosecu ... More >>

How Rothstein Says Banks Helped Run His Ponzi Scheme, Part 2: T.D. Bank

​We wrote earlier today about the latest settlements going to investors in Scott Rothstein's $1.2 billion Ponzi scheme; investors were awarded $130 million and lawyers at least another $50 million from T.D. Bank and Gibraltar Bank & Trust Co. The previous post covered Rothstein's description o ... More >>

George Elia Accused of Running Fort Lauderdale Ponzi Scheme

​It's probably not a good sign that a $4 million lawsuit regarding an alleged Ponzi scheme seems like "only" $4 million.While the accusations against 68-year-old Fort Lauderdale real estate broker George Elia pale in comparison to Scott Rothstein's billion-plus Ponzi scheme, people definitely stil ... More >>

Scott Rothstein Rebuffs Comparison to Bernie Madoff, Claims He Did "the Right Thing"

​Here's something laughable -- Scott Rothstein vehemently denies being similar to fellow billion-dollar Ponzi schemer Bernie Madoff.Not only that, Rothstein claimed that he did "the right thing," unlike Madoff, and said Madoff should have taken what Rothstein did "as an example."On the ninth day o ... More >>

Scott Rothstein Transcripts Released From Day One of Bankruptcy Deposition

Scott W. Rothstein​Ponzi mastermind Scott Rothstein sure seems to be talking quite a bit during his deposition in South Florida, as the first day of transcripts run over 350 pages.Rothstein spent most of the first day of his deposition -- December 12 -- explaining away how the Ponzi scheme wor ... More >>

Broward Investment Manager Allegedly Sold $11 Million Worth of Imaginary Technology Stock

bnet.comJust like Jim Cramer doesn't have access to stock from Iron Man, John Mattera didn't have access to multiple things he was allegedly selling.​As they say in South Florida: another day, another alleged multimillion-dollar scam.John Mattera, 50, was arrested at his Fort Lauderdale home yeste ... More >>

Scott Rothstein Saga: Howard Kusnick Gets Two Years Up the River

Howard Kusnick (left).​Howard Kusnick -- a former lawyer at Scott Rothstein's now-defunct law firm and associate to his $1.2 billion Ponzi scheme -- was sentenced today to two years in federal prison.Kusnick is now the second person in the current round of Rothstein-related indictments to receive ... More >>

Scott Rothstein Saga: TD Bank Accused of Being Complicit in Ponzi Scheme

​Herbert Stettin, the Chapter 11 trustee for victims of Scott Rothstein's $1.2 billion Ponzi scheme, has filed a lawsuit against TD Bank, alleging it was at fault for allowing Rothstein and his Ponzi pals to continue to rip off his investors.As you may recall, Rothstein's computer nerds for his no ... More >>

Scott Rothstein Goon Howard Kusnick Enters Guilty Plea

Howard Kusnick (left)​Howard Kusnick, a former lawyer at Scott Rothstein's now-defunct law firm, pleaded guilty yesterday to a single count of conspiracy to commit wire fraud.Kusnick, a 58-year-old Tamarac resident, is accused of defrauding two clients of the Rothstein Rosenfeldt Adler law firm b ... More >>

Scott Rothstein's Buddy "Meatballs" Applies to Be Fort Lauderdale Cop

jiajem.comThis is Meatwad, not Meatballs.​Officer Meatballs, Fort Lauderdale P.D. -- it has a certain ring to it.It could be a reality if former Kim Rothstein bodyguard, Scott Rothstein client, and 'roided-up former cop Joe "Meatballs" Alu gets his way.A Fort Lauderdale police spokesman confirmed ... More >>

Scott Rothstein Saga: Federal Prosecutors File Motion To Reduce 50-Year Prison Sentence

Scott Rothstein: Looking for his get-out-of-jail-free card​It turns out Fort Lauderdale's king Ponzi schemer Scott Rothstein won't rot away in prison for 50 years after all.Assistant U.S. Attorney Lawrence LaVecchio filed a motion today to reduce Rothstein's prison sentence, although how much ... More >>

Scott Rothstein Saga: Four Alleged Co-Conspirators Set Dates For Guilty Pleas

csmonitor.comScott Rothstein​The four men indicted late last month as being conspirators in former Fort Lauderdale lawyer Scott Rothstein's $1.2 billion Ponzi scheme are scheduled to enter guilty pleas, according to the Associated Press.The men, Howard Kusnick, 58, of Tamarac, Stephen Caputi, 53, ... More >>

How Much Would You Pay For Bernie Madoff's Underwear?

Boxers or briefs, sir?​Some lucky bidder paid $200 for 14 pairs of Bernie Madoff's boxers at a government auction this weekend at the Miami Beach Convention Center. The undies were confiscated from the Ponzi schemer's Palm Beach mansion and sold by the U.S. Marshals Service, along with his prescri ... More >>

Scott Rothstein Saga Continues: Four More Charged in $1.4 Billion Ponzi Scheme

csmonitor.comIt sucks (now) to be friends with Scott Rothstein.​Former Fort Lauderdale lawyer and Ponzi schemer extraordinaire Scott Rothstein is almost a year into rotting away in his 50-year prison sentence, and now four more of his old pals have a chance of joining him in the joint for a few ye ... More >>

Bernie Madoff Talks Again, Revealing His Inner Life to New York Magazine

Bernard Madoff talks to New York Magazine.​Bernard Madoff is not a sociopath and the U.S. government is a large Ponzi scheme, according to Bernard Madoff -- in New York Magazine. That's circular attribution, a nod to the business mastermind's years of roundabout manipulations. The infamous schemer ... More >>

Nevin Shapiro Is the Caligula of South Florida's Ponzi Empire

Fox Meets Henhouse

MC Model Citizen's Latest: Rick Headroom​So Florida Governor-Elect Rick Scott named his transition team which was stocked with former Jeb Bush staffers, hardcore state Republicans, and even our own U.S. Sen. George "The Maestro" LeMieux.   Mainigi​The transition t ... More >>

Uh-Oh, Now Burglars Are Striking at the Country Club

FlickrA bird's-eye view of the Palm-Aire golf course.​Typically, country clubs don't need sophisticated security systems -- mainly because smash-and-grab thieves don't have the money to cultivate golf as a hobby, meaning there's nothing in the clubhouse worth stealing. Usually, the only theft on a ... More >>

Billionaire Hedge Fund Manager Heads to Palm Beach to Distance Self From Bernie?

Flickr: BobSorosLet's hope Cohen was smart enough not to wear Bernie's hat and jacket combo to the golf course.​We understand it's rough out there for successful hedge fund managers who don't want their clients thinking about Bernie Madoff. But Steven A. Cohen's "I'm not Bernie" parties need some ... More >>

Stanford Employees in Fort Lauderdale Accused of Shredding Evidence of Massive Fraud

FlickrDid Allen Stanford's local employees try to cover up his crime?​The first criminal trial in the Stanford Financial Group fraud is under way, and it ain't pretty for the local branch. In opening remarks of a trial that began Monday in Miami, prosecutors told the jury that Thomas Raffanello an ... More >>

Morning Juice: Stage Fright at Sun Life; Broward Commissioners Give Voters No Choice on Courthouse

​As the weather slowly warms for the big game, let's see what the local headlines have to say:Sun Life Stadium had a mighty scare last night when a stage collapsed during a Super Bowl rehearsal, injuring four people. Not exactly the publicity that the folks at Sun Life had in mind when they ponied ... More >>

At Speech in West Palm Beach, Attorney General Eric Holder Touts Fraud Task Force

Flickr: MainJusticeEric Holder​What better place to promote a new Justice Department task force against financial fraud than South Florida? Specifically, U.S. Attorney General Eric Holder gave his speech this afternoon at the Forum Club of the Palm Beaches, which staged a luncheon in his honor at ... More >>

GlobeTel CEO Indicted

courtesy GlobeTel​A couple of years ago, we ran a feature story about GlobeTel, a company that was supposedly going to deploy blimp-like satellites across the country and beam down internet signals. There were a few problems with the scheme: building hi-tech airships seemed a job more suited for b ... More >>

More Money, More Drama

Madoff Accountant Enters Guilty Plea; Questions Remain for Rothstein Money Manager

​David Friehling, an accountant with South Florida roots, is going to follow Bernard Madoff into prison. The Miami native entered a guilty plea today to nine felony charges. Hilariously, Friehling maintains to this day that though he rubber-stamped Madoff audits and invested with Madoff, he didn't ... More >>

President Obama Fails to Go After Those Responsible for Financial Meltdown

Accused Fraudster From Michigan Had Lauderdale Condo, Post-Madoff Success

Flickr: Christopher GosselinThe Nu River Landing, where McQueen and his wife own a condo -- at least until the government snatches it.​If there's any truth to the government's allegations against David McQueen, holding on to his Fort Lauderdale condo would appear to be the least of his concerns. F ... More >>

O Brother, How Dare Thou: Alleged Ponzi Scheme Sparks Sibling Rivalry

Flickr: Robert Couse-Baker​Canada may have a better health-care system than the U.S., but when it comes time to punish a Ponzi schemer, our neighbors to the north look south with envy. Bertram Earl Jones, a Montreal financier, is that nation's version of Bernie Madoff. He stands accused of committ ... More >>

With Plea by Former CFO, Dread Among Ponzi Schemers' South Florida Friends

miamiarchdiocese.orgKnighted by the Miami Archdiocese, Michael Bienes may have to duel with the government's new witness.​Manhattan accountant Frank DiPascali confessed this week to his role in the Bernard Madoff Ponzi scheme, and he just might be the snitch that federal prosecutors have been wait ... More >>

Fraud Expert From Fort Lauderdale Linked to Stanford Case

Stanford​Thomas Cash, who lives in Fort Lauderdale but who for years has been the chairman of Kroll, Inc., the risk consulting firm in Miami, resigned from that position last week amid allegations that he helped mislead investors who sustained losses in the alleged Ponzi scheme for which Allen Sta ... More >>

Caged Heat: Alleged Ponzi Prince Trapped in Boca Firm's Texas Sweat Lodge

Photo: Caribbean CricketStanford: Texas Toast​GEO Group and Stanford Group: two very rich businesses with offices in Boca Raton, which have both recently caught flak for acting unethically in their respective industries. Totally unrelated, except for one cruel twist of fate: Allen Stanford, awaiti ... More >>

Doesn't Pay to Be Bernie's Buddy Anymore

Bad news for Madoff associates -- some of whom reside in Broward and Palm Beach Counties -- who were hoping Bernie would take his secrets to the grave. Hot from the AP wire:A lawyer for victims of Bernard Madoff's Ponzi scheme says the financier told him during a 4 1/2-hour prison interview plenty o ... More >>

Your Money's No Good Here: Another Alleged Ponzi Fleecer Flees Palm Beach

Flickr User: mspdigipartiesTom Petters with his daughter JenniferHey, look another house just got sold on Ponzi Island! Sorry, I mean Palm Beach. Easy mistake, since alleged Ponzi schemer Tom Petters is a neighbor of convicted $67 billion Ponzi schemer Bernard Madoff, among other Island residents li ... More >>

For Next Federal Prosecutor, a Million-Dollar Question

For the new U.S. attorney, who will come from among the 16 names on this list, busting financial fraud will be the top priority in South Florida federal courts. And although those cases are endlessly complex, it's fairly simple to get an overview of the region's candidates for criminal prosecution: ... More >>

R. Allen Stanford's story tells how one eccentric billionaire can help bring the global economy to its knees

Feds Launch Surprise Seizure on Unsuspecting Madoff Yacht

A reenactment of U.S. Marshals taking control of Madoff's yacht.Federal authorities seized Bernie Madoff's yacht in Fort Lauderdale yesterday and then took control of the home his wife owns in Palm Beach. U.S. marshals described "using an element of surprise" to grab Madoff's property, but if you're ... More >>

Madoff Plea Somehow Not Quite Enough

This morning, MSNBC interviewed one of the many, many victims of Bernard Madoff, who entered his guilty plea to 11 felony charges this morning so he can go to prison to die. The victim, Peter Moskowitz, asks a good question: Is Madoff being a good general, jumping on the proverbial grenade to save a ... More >>

From the Penthouse to the Big House: Madoff to Plead Guilty

Palm Beach financier Bernard Madoff is expected to plead guilty and get a life sentence.Here's betting that Bernie's future fellow inmates are looking forward to performing a very literal rendition of what Madoff did figuratively to his investors.

Anti-Semitic Schadenfreude in Palm Beach?

Rabbi Michael Resnick of Palm Beach's biggest synagogue, Temple Emanu-El, told a national TV news magazine that Bernard Madoff's fraud case has been a catalyst for wealthy anti-Semites in South Florida's most exclusive Zip Code. Resnick's interview looks to be the centerpiece in tonight's edition of ... More >>

Local Financial Analyst Packages Stanford Case for SEC

As we reported on this blog Friday, speculation has been flying through the financial community that Stanford et al could be operating an enormous Ponzi scheme a la Bernie Madoff. Now it's official: The US Securities and Exchange Commission filed suit in Dallas Monday against Stanford ... More >>

A Ponzi Scheme in Boca? Stanford Group Co. Won't Talk

Speculation is rampant in the financial press that R. Allen Stanford -- who Forbes magazine estimates to have a fortune of $2.2 billion, making him #205 on their list of wealthiest Americans -- is the next Bernie Madoff. Forbes says Stanford Financial Group has $51 billion in assets under ... More >>

St. Thomas Aquinas High School, Monsignor On Madoff Victim List -- UPDATED

The full list of Bernie Madoff fraud victims has been released by the court and among them is St. Thomas Aquinas High, the football powerhouse private Catholic school in Fort Lauderdale.   Listed as the representative for the St. Thomas account is Monsignor Vincent Kelly, who als ... More >>

Morning Juice: Lauderdale Exports Panhandlers, Local Madoff Broker Fights The Man

If there's one thing you don't hear enough about, it's that Fort Lauderdale has the best panhandlers this side of Calcutta. I mean, Miami may have more guys with clever signs at busy intersections, but ours have that little aggressive something that makes them special, that lets you feel that feelin ... More >>

Madoff's Man

Fort Lauderdale multimillionaire Michael Bienes never cut ties with Bernie Madoff — even after the SEC shut him down.

Bienes, Avellino, Madoff and The Church

Bienes Knighted By Catholic Church Well, the Sun-Sentinel, apparently in a panic over the New York Times beating it to the story, finally reported on the connection between Fort Lauderdale philanthropist Michael Bienes and his partner, Frank Avellino, to Bernie Madoff, the $50 billion Po ... More >>

Madoff's Web Site Is A Snuff Film

Hey everybody. I've been away (in Jupiter. No, the planet!) and now I'm trying to find out how my $50 billion investment is going. Except the web site of my broker Bernie Madoff seems to be down. Something about a court-ordered liquidation? That doesn't sound good.Ha, ha, just kidding. I have far to ... More >>

Fort Lauderdale Philanthropist Tied To Epic Swindler Madoff -- UPDATED

Michael Bienes doesn't make a lot of news and hasn't been involved much in local politics, but if you look around you'll see the tall and seemingly kindly Fort Lauderdale multi-millionaire's name all over the place. At Holy Cross Hospital, there's the Michael and Diann ... More >>