Tick Tock

The statute is about to run on the Scott Rothstein case.  And a big indictment came out today against Former regional vice president of TD Bank Frank Spinosa, who is represented by Sam Rabin. Judge Bloom got the case. The new judges have all the fun...

From the Sun-Sentinel article:

Spinosa, 53, was released on $250,000 bond after a brief appearance in federal court. He was placed on house arrest with electronic monitoring and is scheduled for arraignment on Oct. 24, court records show.

His lawyer, Samuel Rabin, said Spinosa will plead not guilty and plans to go to trial on the allegations.

"He's innocent and he wants his day in court," Rabin said.

Spinosa has known for years that he was under criminal investigation and had offered to surrender if the government filed charges against him, Rabin said. He called the arrest at Spinosa's home "totally unnecessary" and "one of those typical Rothstein case flourishes."

The grand jury indictment, unsealed Friday morning, charges Spinosa with one count of wire fraud conspiracy and five counts of wire fraud. Each charge carries a maximum punishment of 20 years in federal prison and hefty fines.

Spinosa is accused of facilitating Rothstein's fraud by giving investors a "false sense of security" and inducing them to invest hundreds of millions of dollars with Rothstein by lying about how much money was in Rothstein's bank accounts and who could withdraw it.

Spinosa signed off on fraudulent so-called "lock letters" that led Rothstein's investors to believe that money in some of Rothstein's bank accounts was being held only for them, according to the charges.

Prosecutors also say Spinosa lied and used a script containing "talking points" prepared by Rothstein when he met with some investors and participated in conference calls with others to help reassure them their investments were safe.

Rothstein's fraud involved fooling investors into thinking they were making huge profits by investing in confidential legal settlements. He told investors they were making a lot of money by fronting smaller lump sums to plaintiffs who had won settlements or judgments and wanted quick access to cash. The investors would supposedly reap huge profits by later collecting the full amount of the settlements.

Rothstein later admitted it was all a lie and he used the money to pay for what he liked to call his "rock star lifestyle." Cash from new investors was used to pay out "profits" to older investors and keep the fraud alive.

"While defendant Spinosa and Rothstein did not discuss the fraudulent nature of the confidential settlements, they did agree to the preparation of the false and fraudulent 'lock letters' and the making of false statements to investors," according to the indictment.