Rosh Hashanah

Rosh Hashanah is the Jewish new year, which is celebrated yesterday and today. Schools and state courts were closed yesterday. But the feds were open. And the 11th Circuit issued this opinion regarding Scott Rothstein, affirming his 50 year sentence. They couldn’t have waited a few days to issue the opinion?

In other news, there’s a new baseball smuggling case. The last one, a trial in front of Judge Kathleen Williams, is on appeal. The Sun-Sentinel has the details on the new matter:

A Cuban national in South Florida is accused of running a smuggling operation that moved Cuban baseball players through Mexico and into the major leagues in exchange for a large percentage of their contracts.
After being deported from Mexico in June, Tomas Valle Valdivia, 44, faces new smuggling charges in Miami. Prosecutors say he is part of a criminal enterprise that has profited for years off the black market for Cuban ballplayers.
***
Valdivia, also known as “Tomasito,” is accused of using go-fast boats to smuggle one player off the island in October 2013 and another at an undetermined time. Neither player is identified in court documents, but the first appears to be Cincinnati Reds pitcher Raisel Iglesias.
Court documents claim the agreed-upon price for the player’s smuggling was 20% of his $27 million contract. Iglesias was the Reds’ only Cuban defector in 2013, according to the website baseball-reference.com. He signed a $27 million contract in 2014.
RELATED: White Sox's Jose Abreu says he ate fake passport, washed it down with beer on plane to U.S. »
In addition, Tomasito’s Lawyer, Joaquin Perez, said the player is “not doing so well for Cincinnati.” Iglesias finished last season with a 3-12 won-lost record.
Perez made the comments Thursday in Miami federal court, where he argued unsuccessfully for Tomasito’s release from custody.

News and notes, Ultra Spring Break edition

It's Ultra time in downtown Miami, which means the lawyers will be fleeing around lunchtime today. And then it's spring break next week.

Scott Rothstein is writing his own motions. Paula McMahon has the interesting story here:

Ponzi schemer Scott Rothstein is imprisoned and disbarred from practicing as an attorney but it hasn’t stopped him from flexing his jailhouse lawyer muscles – on his own behalf.

Rothstein, 55, personally filed court documents on Thursday in his bid to try to force the feds to reduce his 50-year prison sentence.

Rothstein, who pleaded guilty to orchestrating a $1.4 billion Ponzi scheme, first had to obtain permission from Senior U.S. District Judge James Cohn to file his own court pleadings.

The judge consented and Rothstein, who is being held in the U.S. Bureau of Prisons’ secretive witness protection program for inmates, typed up a 13-page legal argument and submitted it Thursday.

In other news, Colbert asked RGB whether a hotdog is a sandwich. This is pretty funny.

Shocker -- feds now say Scott Rothstein was lying

Shocker -- Feds now say Scott Rothstein was lying! You don't say!

From the Herald:

Convicted South Florida Ponzi schemer Scott Rothstein, a disbarred attorney who ran a $1.2 billion investment scheme out of his Fort Lauderdale law firm, will not be receiving a reduction in his 50-year prison sentence because he lied to federal prosecutors, authorities said Tuesday.

Prosecutors withdrew their pending motion to reduce Rothstein's sentence based on his cooperation in the sprawling racketeering investigation because he was “untruthful in an affidavit” filed with the federal court. Rothstein, who helped the U.S. attorney's office gain convictions of almost 30 defendants, was hoping to see many years cut from his sentence for his assistance.

That reward won't happen.

“In the judgment of the United States, the defendant provided false material information to the government and violated the terms of his plea agreement,” Assistant U.S. Attorney Lawrence LaVecchio wrote in a motion to withdraw an earlier request for a sentence reduction with U.S. District Judge James Cohn. “Therefore, in the exercise of its sole discretion, the government moves to withdraw the previously filed motion.”

Government asking for life sentence for convicted fraudster (Updated)

Update-- Judge Martinez sentenced him to 40 years. 

Original post:

According to this Herald article:

The former chief of the failed Clubs Resorts and Marinas will learn his sentence in a 9:30 a.m. Monday hearing at the Key West federal courthouse. Maximum combined sentences for the counts carry a potential 200 years behind bars, prosecutors wrote in a filing last week.

A life sentence "would be reasonable" for convicted bank-fraud defendant Fred D. "Dave" Clark, former chief of the failed Cay Clubs Resorts and Marinas, federal prosecutors say.

Clark "has repeatedly advanced his view that everyone is to blame for his conduct but himself," prosecutors wrote. The "defendant has exhibited a decades-long pattern of making up his own rules and avoiding responsibility for breaking the law. Until now."

The 11-page sentencing memo describes prison terms in other financial fraud cases, including the 50-year sentence imposed on disgraced Fort Lauderdale attorney Scott Rothstein.

Clark was convicted Dec. 11 after a five-week retrial, after a jury could not reach a verdict in his first trial.

Federal authorities say Cay Clubs was a $300 million Ponzi scheme.

Yikes, a life sentence for this crime... when Rothstein -- the supposed worst of the worst -- gets 50. That seems way too high. What say you?

Meantime, it's the first oral argument without Justice Scalia this morning, in this exclusionary rule case: "Should courts suppress evidence obtained from a suspect after a police officer executes a valid arrest warrant, if the officer first illegally detained the suspect?"

Michael Szafranski sentenced to 2 1/2 years

Judge Dimitrouleas issued the sentence in this Rothstein-related case. From the Sun-Sentinel:

Michael Szafranski told a crowded courtroom Monday that he betrayed his family and friends, lied, sinned and violated both U.S. law and the strict religious rules he was raised to follow.
"I come before you ashamed, embarrassed and humiliated by my actions," Szafranski told U.S. District Judge William Dimitrouleas before being sentenced for helping Ponzi schemer Scott Rothstein rip off millions of dollars from investors, including members of his synagogue. "To say I am remorseful is an understatement."
Szafranski, 37, of Surfside, was sentenced to 2.5 years in federal prison after the judge agreed to follow a recommendation from the prosecution and defense. He pleaded guilty to one count of wire fraud conspiracy in July.
He sobbed as he hugged his wife goodbye and was taken into custody in the Fort Lauderdale courtroom.

Szafranski said greed drove him to become a "despicable person" and that he has done everything he can think of to try to atone for what he did.
Szafranski "made full restitution" to victims five years ago when he paid more than $6.5 million to the Rothstein Rosenfeldt Adler law firm bankruptcy trustee, his attorney wrote in court records. That amount represented more than 90 percent of his family's assets, the defense said.

President calls for Criminal Justice Reform

The top people at the Executive Branch are trying.  Now we need the judicial branch to step up.  From the Washington Post:

President Obama called for an overhaul of the criminal justice system Tuesday, saying that the United States needed to reevaluate an “aspect of American life that remains particularly skewed by race and by wealth.”
The speech at the NAACP’s national convention, coming on the heels of a sweeping act of clemency Monday and ahead of his visit Thursday to a federal prison in Oklahoma, was the formal launch of one of the president’s last major legislative campaigns.
Sentencing reform represents one of the final domestic policies Obama hopes to broker on Capitol Hill before leaving office.
Telling the audience that “we can’t close our eyes anymore,” Obama noted that the nation’s prison population had more than quadrupled from 500,000 in 1980 to 2.2 million today.
“In far too many cases, the punishment simply doesn’t fit the crime,” he said. “And by the way, the taxpayers are picking up the tab for that price.” He argued that the $80 billion the federal government spends each year on prisons — nearly a third of the Justice Department’s budget — could instead fund preschool for every 3- and 4-year-old in the country.

In local news, Michael Szafranski will be taking a plea.  Paula McMahon broke the story:

A financial adviser accused of deceiving investors who lost millions in Scott Rothstein's $1.4 billion Ponzi scheme is expected to plead guilty to at least one criminal charge later this month, court records show.

Michael Szafranski, 37, of Surfside, is scheduled for a change-of-plea hearing July 29 in federal court in Fort Lauderdale.
Details of any plea agreement with federal prosecutors would not be made public until after the hearing with U.S. District Judge William Dimitrouleas.

Rothstein testified in depositions that Szafranski knew about his fraud. Prosecutors said Szafranski did not know Rothstein was running a Ponzi scheme, but Szafranski knew he and Rothstein were breaking the law.
Szafranski was indicted in February on one count of wire fraud conspiracy and 11 counts of wire fraud. Each of the charges carries a maximum punishment of 20 years in federal prison and fines, though he would likely receive a much lesser sentence.
His lawyers previously said Szafranski, who is free on $250,000 bond, planned to go to trial.

 

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.

Another monster sentence

This time it's 27 years for mortgage fraud. 27 YEARS! And that's less than the prosecutor was asking for...

From the Tampa Bay Times:

Florida developer Domenic Rabuffo was sentenced Tuesday to more than 27 years in federal prison for a North Carolina mortgage fraud scheme that bilked four major banks out of more than $50 million in loans made to dozens of Floridians who posed as straw buyers.

The Miami man, now 78, is likely to spend the rest of his life behind bars.

Since he was jailed without bail after his indictment in January, Rabuffo has been hospitalized several times and had carotid surgery to restore the flow of blood to his brain. His lawyers say he also has diabetes and a degenerative spinal disc problem that has in a wheelchair.

U.S. District Judge K. Michael Moore noted that the mortgage fraud scheme contributed to the country’s economic decline and indicated his sentence was partially designed to deter others.

Rabuffo is appealing the jury verdict that found him and several others guilty of conspiracy to commit mortgage fraud and multiple counts of bank fraud.

Rabuffo’s lawyer at sentencing Tuesday in Miami said a 60 month sentence would be appropriate.

Assistant U.S. Attorney Dwayne Williams asked for the 327 month sentence, slightly more than 27 years and at the top of the sentencing guidelines for a defendant with his record.

UPDATE -- Meantime, Scott Rothstein's ex-partner Stuart Rosenfeldt was sentenced this morning by Judge Cooke to a 33-month prison term on conspiracy conviction.

30 months for Russell Adler

Paula McMahon has some good coverage of the sentencing before Judge Cohn:

Ponzi schemer Scott Rothstein's former law partner Russell Adler was sentenced Friday to 2 1/2 years in federal prison for illegally funneling campaign donations to Republican presidential and senate campaigns.

Adler began visibly shaking in court as U.S. District Judge James Cohn announced that he deserved a punishment on the high end of the sentencing guidelines, which recommended incarceration for two to 2 1/2 years.

Adler, 52, of Delray Beach and Fort Lauderdale, put his fingers to his eyes and sighed deeply.

Apologizing for his criminal actions, Adler said he regretted that he insisted on having his name added to the law firm's name, making it Rothstein Rosenfeldt Adler, or RRA.

"Being the A in RRA turned into an ironic curse that has ruined my name and haunts and humiliates me to this day," he told the judge.

Supporters, including Senior Broward Circuit Judge Richard Eade, spoke on Adler's behalf and praised his professionalism, ethics and personal generosity. But Judge Cohn said Adler's crimes were serious and warranted punishment.

When the law firm was "awash with cash" in 2008 and 2009, the judge wondered aloud what Adler – an experienced attorney and name partner – thought was happening.

"Mr. Adler was at the epicenter, he was at ground zero. Was he blind and deaf as to what was going on?" the judge asked.

How much time should Christina Kitterman get? (UPDATED)

UPDATE -- KITTERMAN SENTENCED TO 5 YEARS.

Paula McMahon has the preview of the sentencing here. 

When Scott Rothstein's former protegee Christina Kitterman went to trial earlier this year, she became the only one of his associates — so far — to roll the dice and force prosecutors to prove their case.
It didn't work out for her. Jurors found her guilty of three counts of wire fraud for impersonating a Florida Bar official during an April 2009 conference call that federal prosecutors said kept Rothstein's massive Ponzi scheme alive for its final six months.
Kitterman is facing a very uncertain fate when she is sentenced Tuesday in federal court in West Palm Beach.
Sentencing guidelines recommend a punishment of 20 years in prison, her defense attorney Valentin Rodriguez Jr. said, but he hopes U.S. District Judge Daniel T.K. Hurley will sentence her to probation.
"She had to endure Scott Rothstein for many years, which is punishment enough," Rodriguez wrote in court records submitted to the judge.
Kitterman is a convicted felon, will lose her license to practice law and was "blacklisted in the legal community," Rodriguez wrote.

How much time should Kitterman get?
	To the moon -- 20 years
	20 years is too much, but she should get a significant sentence
	5 years, like many of the co-defendants who pleaded guilty, sounds about right
	Probation because as her lawyer says, she has suffered enough
pollcode.com free polls

Who will Rothstein vote for in the next election?

He's still eligible to vote!  From the Sun-Sentinel:

One of South Florida’s most notorious felons, Ponzi schemer Scott Rothstein, is still a registered voter in Florida.
His presence on the voter rolls was discovered by Broward civic activist Andrew Ladanowski and confirmed Monday by Mary Cooney, director of public services at the Broward Supervisor of Elections Office.
Rothstein is still listed as a registered voter at his tony, previous address at 30 Isla Bahia Drive in Fort Lauderdale.
He’s now at an undisclosed location because he is in a witness protection program within the federal prison system because he supplied authorities with information about organized crime figures. His whereabouts have been a closely guarded secret since June 2010, when he was sentenced to 50 years in federal prison for masterminding a $1.4 billion Ponzi scheme out of his opulent law office on Fort Lauderdale's Las Olas Boulevard.
Voting records list his mailing address as 401 E. Las Olas Blvd., in Fort Lauderdale. That’s the downtown Bank of America building where his Rothstein Rosenfeldt Adler law firm was headquartered before his scheme imploded.
He last voted in the 2008 presidential election. A registered Republican, he voted in the 2008 state primary and in the 2008 presidential preference primary. He first registered to vote in February 1998.
His wife, Kim, is also still registe
red to vote, Cooney said.

Thursday's news and notes

1. The dude who disrupted the Supreme Court got time served. From the AP:

A demonstrator who interrupted arguments at the U.S. Supreme Court in February and whose group posted video of the protest online, a first for the court, has been sentenced to time served.

Noah Kai Newkirk of Los Angeles pleaded guilty Tuesday in connection with the Feb. 26 disruption, after which he served a night in jail. After Tuesday's hearing, a Supreme Court policeman gave Newkirk a piece of paper that notified him he is also barred from the court grounds for a year.

After video of his protest was posted online, the Supreme Court, which forbids cameras and all other electronic devices, tightened its security screening. Newkirk declined Tuesday to say how the video of his protest was shot.

Newkirk, a member of the group 99Rise, told a D.C. Superior Court judge overseeing his case that he spoke out to protest the "unprecedented amount of money" corporations are spending on elections. He said the Supreme Court played a role in "deepening that corruption."
...
Newkirk's attorney, Jeffrey L. Light, told the judge Newkirk has no intention of returning to the Supreme Court. But Newkirk said outside the hearing that "it's a hypothetical possibility there may be others."

2. While keeping the Court closed to cameras and punishing those who disrupt the Court, Justice Scalia told a student that he should consider revolting:. From the WSJ:

Supreme Court Justice Antonin Scalia, after delivering prepared remarks before a standing-room-only crowd at the University of Tennessee College of Law on Tuesday, was asked by a student about the constitutionality of the income tax.

Justice Scalia, according to the Knoxville News Sentinel, replied that the government has the right to take his money. “But if reaches certain point, perhaps you should revolt,” he reportedly told the young man.

The justice, who was invited by the law school to present its annual “Rose Lecture,” delivered what he described as his “stump speech.”

He talked about the time he joined with the majority in 1989 in declaring that flag-burning was constitutionally protected speech.

“You’re entitled to criticize the government, and you can use words, you can use symbols, you can use telegraph, you can use Morse code, you can burn a flag,” he said, according to the News Sentinel.

Justice Scalia also said that he and his colleagues on the bench don’t care which party controls the White House, saying the clash of opinions among the justices isn’t partisan.

And he, naturally, offered a defense of his theory of originalism, the belief in a Constitution that’s fixed and unchangeable.

“The Constitution is not a living organism for Pete’s sake,” the justice said, according to the report. “It’s a law. It means what it meant when it was adopted.”

3. Another Rothstein indictment. This time it's Irene Stay. From the Sun-Sentinel:

Federal prosecutors filed a criminal charge Wednesday against Scott Rothstein's former bookkeeper, who became the chief financial officer of his law firm, court records show.

Irene Stay, now Irene Shannon, 50, of Miami, was charged with a lone count of conspiracy to commit money laundering and bank fraud. Prosecutors said she is the 18th Rothstein accomplice to be held accountable.

Shannon played a vital role in Rothstein's $1.4 billion Ponzi scheme, which he operated from 2005 to 2009, according to investigators.
Her job involved overseeing all of the law firm's accounting work from the secured inner sanctum that Rothstein had built in his Las Olas office, according to investigators from the IRS and FBI.

Some of Rothstein's investors alleged in a civil lawsuit that when Rothstein's law partners confronted Shannon after he fled to Morocco in late October 2009, she began crying and repeating the phrase, "I don't want to go to jail."

Fort Lauderdale jeweler Patrick Daoud gets house

Another Judge Marra/Fred Haddad matchup. From Paula McMahon:

Well-known Fort Lauderdale jeweler Patrick Daoud was sentenced to ten months of house arrest and two years of probation on Friday for helping to hide a huge 12.08 carat yellow diamond that Ponzi schemer Scott Rothstein's wife was attempting to conceal from federal authorities.

Daoud, 55,the owner of Daoud's Fine Jewelry in Fort Lauderdale, pleaded guilty to obstruction of justice last year.
***
His crime, prosecutors said, was lying about the diamond under oath when he was summoned to a deposition in federal bankruptcy proceedings in November 2011. He testified that he never received or kept the diamond and later, in June 2012, returned it to Weisman.

"He had the opportunity to do the right thing and chose not to," Assistant U.S. Attorney Lawrence LaVecchio said in court.

Daoud's lawyer, Fred Haddad, said that Daoud was "deliberately kept in the dark" and knew nothing of Rothstein's attempt to hide jewelry and other assets to try to keep her financially afloat after her husband's $1.4 billion investment fraud scheme was exposed in October 2009.

Daoud panicked when he figured out what was going on and got involved in a "misguided attempt to protect" Weisman – who he knew from attending charitable events – and his investment, Haddad said.

"Aside from losing a large sum of money in purchasing the ring, the embarrassment in a community where he is so well-known, [Daoud] has also been branded a felon, with a resultant loss of business," Haddad wrote.

When U.S. District Judge Kenneth Marra asked Daoud if he wanted to say anything before he was sentenced, Daoud hesitantly replied: "I'd rather not."

Drs. Joseph Castronuovo and Cynthia Cadet sentenced

You remember them -- they were acquitted of all the drug charges in front of Judge Marra a few weeks back.  But they were convicted of money laundering.  Many thought they would get very low sentences because of the acquittals. Not so much.  From the Sun-Sentinel:

It seemed like a victory for two doctors last summer when a jury cleared them of federal charges they had caused the overdose deaths of eight patients they treated at some of South Florida's most notorious pill mills.
But both doctors were found guilty of money laundering and a federal judge meted out stiff punishments for those convictions on Friday, saying there was no way the highly educated professionals did not know they were supplying oxycodone to drug dealers and addicts.
Dr. Joseph Castronuovo, who turns 75 in a few days, was sentenced to 18 months in federal prison. Soon after, Dr. Cynthia Cadet, 43, of Parkland, was sentenced to 6 1/2 years in federal prison.
Both are scheduled to surrender to prison authorities in June. Their lawyers said they intend to appeal and hope to be allowed to remain free on bond while the case is going through the appellate courts.
***
U.S. District Judge Kenneth Marra said he carefully followed the jury's verdict that acquitted Cadet of charges that she contributed to the deaths of six of her patients and Castronuovo of causing the deaths of two of his patients.
But he said it was inconceivable that the two doctors, who had stellar reputations, did not know what was going on at the pain clinics, or pill mills.
Former staff and patients testified there were garbage cans filled with cash in the clinics and "patients" who traveled by car from Appalachia to South Florida to get massive prescriptions of pills were clearly addicts. Practically every patient received almost identical doses of the drugs, prosecutors said, and many of them sold those prescriptions to drug dealers, who traded them in rural communities far from South Florida.
Marra referred to security video footage that showed the waiting room at the clinic where Cadet had worked.
"The chaos, the madness that was going on in that facility," made it obvious to all what was going on there, Marra said. He gave the doctors the benefit of the doubt for the first few months they worked at the clinics but said they definitely knew they were working for a criminal operation but continued to take their salaries, which came from tainted funds, he said.
"It's just impossible not to have known that the people were drug addicts," the judge said.

 In other District news from last week, Scott Rothstein's former partner Russell Adler pleaded guilty last week to a count with a 5-year cap.  He avoids the risk of decades in prison.  I don't know any of the facts of Adler's case, but in general I wonder how many innocent people take deals like this to avoid the huge trial penalties that we see in the criminal system.  Tell me in the comments what you think: What percentage of our inmates are innocent people who took a deal to avoid the risks of trial?

Kitterman convicted and juror says that jury believed Rothstein

Paula McMahon interviewed one of the jurors, which is always fascinating.  Here's what she had to say:

Her attorney, Valentin Rodriguez Jr., said Kitterman and he were "deeply disappointed" but had no regrets about their trial strategy.
"We felt he was essential to our defense … the jury needed to see him and how manipulative he was and is," Rodriguez said.
Juror Susan Schweiger, of West Palm Beach, said she thought Rothstein was "pretty much" a credible witness and jurors believed most of what he said.
"I don't understand why he was called by the defense because he did not help her," Schweiger said. "I think he was, for the most part, telling the truth. I think he lied about some stuff because you don't change your nature totally like that but we believed him."
She said jurors did not hold Kitterman's battle with drug and alcohol addiction against her at all, but believed she was guilty of the crimes prosecutors accused her of committing.

Here are the results from the poll taken a few days ago, which the readers got right:


Should the defense have called Scott Rothstein to the stand in the Kitterman trial? (multiple answers allowed)
Selection  No, it's just way too risky 21 votes 
 No, it's better to point the finger at the prosecutor for not calling him 20 votes 
No, it was just a publicity stunt by the defense 4 votes 
Yes, you can dirty up the government by calling him 6 votes 
 Yes, you need to take such risks as the defense 9 votes 
Yes, it will make for a nice comparison when Kitterman testifies 11 votes 

Kitterman strikes back

She testified in her own defense yesterday, taking on Scott Rothstein.  From the DBR:

Kitterman testified when she joined the Rothstein Rosenfeldt Adler law firm in 2003, she immediately had to ward off Rothstein's sexual advances. She said he threatened to fire her numerous times and called her names like "idiot." Rothstein also had a knack for showing up at the same public place as Kitterman, such as restaurants."Mr. Rothstein had a temper. He was one of those people who had two sides," Kitterman said. "He was a very scary person, but he could be a very kind."Kitterman faces three counts of wire fraud conspiracy. Closing statements before Senior U.S. District Judge Daniel T.K. Hurley in West Palm Beach were expected Tuesday.Rothstein's mistreatment of women in his firm has been a key component to Kitterman's defense. The 12-member jury has 11 women on it.Kitterman said she never thought about filing a sexual harassment complaint against Rothstein with the Equal Employment Opportunity Commission."I was a new lawyer," she said. "I was scared. I just couldn't do something like that."Kitterman testified Rothstein's harassment of her ended when she went to the firm's only other equity partner, Stuart Rosenfeldt, in 2006 and asked to be reassigned so she didn't work directly with the firm's chairman.

The Sun-Sentinel also covers the case and Judge Hurley's ruling to allow the prosecution to cross Kitterman regarding her recovery from addiction:

But federal prosecutor Paul Schwartz's cross-examination cut directly to what prosecutors say was one of many motives Kitterman had to commit crimes at Rothstein's behest.
"You were addicted to alcohol and cocaine," Schwartz said to Kitterman.
Kitterman acknowledged she is a recovering addict and said that after "partying" on Aug. 7, 2007, she realized she had hit rock bottom and called her mother for help. Her mother called Rothstein, and he helped them find a four-week rehab program called "Challenges," Kitterman said.
When she returned to work a month later, Rothstein agreed to pay her salary for the time she had been absent, she said.
And when she told Rothstein that there was negative talk going around about her stint in rehab, Rothstein dispatched an email to the entire firm telling anyone who judged her poorly to resign by the next day.
Every year after that, she said, she thanked him on the anniversary of her gaining sobriety.
Prosecutors read aloud from an August 2009 email she sent Rothstein — just four months after the conference call and two months before the law firm imploded.
In it, she thanked him for his "friendship, love and support" and wrote that "words cannot express" the debt of gratitude she and her family owed to him.
Kitterman testified that she has remained clean and sober to this day. She said she is proud of her continued sobriety but embarrassed that she was in rehab and didn't raise the issue herself in court because she did not think it was relevant.
Senior U.S. District Judge Daniel T. K. Hurley told jurors he was allowing them to hear about Kitterman's drug and alcohol abuse because prosecutors believe it shows some of the reasons they say she was willing to commit crimes for Rothstein.

Will be interesting to see what the jury does.

Should the Kitterman defense have called Scott Rothstein?

That's the question that John Pacenti asks in today's DBR:

West Palm Beach attorney Valentin Rodriguez looked exhausted after verbally sparring with Scott Rothstein.
The disbarred law firm chairman and the mastermind of Florida's largest Ponzi scheme was called as a defense witness for Rodriguez's client, Boca Raton attorney Christina Kitterman.
"Scott Rothstein is not going to win this battle," Rodriguez said defiantly outside the West Palm Beach federal courthouse after the first day of Rothstein's testimony Wednesday. "But he can absolutely pick up on what you are trying to do."
Rothstein's well-documented arrogance made its inevitable appearance during questioning by Rodriguez, a polite-almost-to-a-fault attorney with a knack for quietly getting under the skin of witnesses.
...West Palm Beach attorney Peter Feldman, Rodriguez's co-counsel in Kitterman's case, said, "We knew the risk of calling him as he is unpredictable. I think that risk was outweighed by the jury being able to see him—live and in color—conducting his rock-star lifestyle."
Rodriguez called Rothstein over prosecution objections, bringing one of South Florida's most notorious figures into the public eye for the first time in four years in the first criminal trial centered on his $1.2 billion Ponzi scheme.

So, I will put the question to you to decide:

Should the defense have called Scott Rothstein to the stand in the Kitterman trial? (multiple answers allowed)
	No, it's just way too risky
	No, it's better to point the finger at the prosecutor for not calling him
	No, it was just a publicity stunt by the defense
	Yes, you can dirty up the government by calling him
	Yes, you need to take such risks as the defense
	Yes, it will make for a nice comparison when Kitterman testifies
pollcode.com free polls

Rothstein Rothstein Rothstein!

Everyone was a buzz yesterday over Scott Rothstein testifying before Judge Hurley in West Palm Beach.  Paula McMahon covered it well.  Here are some highlights:

• With a white goatee and closely cut hair that was grayer than the last time he was seen publicly some three-and-a-half years ago, Rothstein, 51, took the witness stand handcuffed and shackled, wearing a bright blue, collared T-shirt and jeans.
  Rothstein — who was subpoenaed by defense attorney Valentin Rodriguez Jr. to testify in the wire fraud trial of Christina Kitterman, a former attorney who worked at the Rothstein Rosenfeldt Adler law firm — appeared in court much earlier than expected because of security concerns.

• Additionally, Rothstein testified he had a sexual relationship with Kitterman.
  “We were two friends who fooled around from time to time, Rothstein testified, alleging Kitterman “pulled me into a bathroom stall to make out with me” at Runway 84 in Fort Lauderdale.
  “We were friends, there's no polite way to say this — we were friends with benefits,” he said. “I loved her and cared about her and I believe she loved and cared about me.”
  “I am NOT happy about being here,” Rothstein said, saying he wished he didn't have to testify about someone he cares about.
• “What ended up happening ... My ego and, at that particular time, my desire for power and money and some of my partners' desire for power and money” led to Rothstein starting his fraud to try to keep his failing law firm afloat, he testified.
  “We grew before we should have grown,” Rothstein told the jury. “I refused to fail and I let this Ponzi scheme explode.”
  “At that time, I had an ego that was out of control,” he continued.
  
• “My wife was indicted for things that she did and also things that I told her to do.”
  He said he told her, during a phone conversation after he briefly fled to Morocco in late 2009, to hide some expensive watches from the government.
  “At a later point in time, before the government took everything, I had had conversations with her [Kim] about making certain that we did not end up on the street ... I didn't tell her what to take, other than the watches.”
• Was Rothstein upset about the length of the sentence imposed by Cohn, Kitterman's lawyer Valentin Rodriguez Jr. asked.
  “That would be an understatement, yes sir,” Rothstein replied.
  Prosecutors filed a court document on June 8, 2011, saying Rothstein should qualify for a sentence reduction for his cooperation. The final decision would lie with Cohn.
  No further action has been taken on the request, Rothstein said, because his cooperation is not complete yet.
  
  
• A second hitch, he testified, is: “I understand there's been an issue pertaining to my failure to tell” the truth to federal authorities about the fact he knew and was involved in Kim Rothstein's efforts to criminally hide some of their assets.
  He still hopes he will get a sentence reduction because he hopes prosecutors and the judge will accept he only lied about hiding jewelry with his wife Kim and that it was a mistake he made under duress, he said.
  He said he hopes prosecutors and the judge will eventually grant him a sentence reduction and agree “that I don't deserve to die in prison for what I've done.”

Snitching ain't easy

That's especially true when you're Scott Rothstein.  For some reason, the feds thought that he shouldn't be required to testify in an upcoming trial.  From Paula McMahon:

Christina Kitterman, one of the lawyers who formerly worked for Rothstein at his Las Olas Boulevard law firm, was charged in August with lying to some of Rothstein's investors to help keep his fraud afloat.
On Friday, a federal judge granted a request from Kitterman's defense attorney, Valentin Rodriguez, to force Rothstein to testify – as a defense witness – in her trial, which is tentatively scheduled for Jan. 6 in federal court in West Palm Beach.
"[Kitterman's] request to compel the production of Scott Rothstein at trial is granted," Senior U.S. District Judge Daniel T.K. Hurley wrote in his order.
But the judge also ruled that Kitterman will have to pay the full cost of moving Rothstein from wherever he is being held, the cost of providing security for him, his prison lodging in South Florida, and the tab for sending him back when he's done.
That happened because prosecutors seemingly were not planning to call Rothstein on their side of the case, a position they did not explain in their court filings.
"The [U.S.] Marshals Service requires a minimum of ten days' notice in order to produce the witness, and that the defendant must bear the cost, in advance, of the transportation, housing and security attendant to the witness' production," Assistant U.S. Attorney Lawrence LaVecchio wrote in court records.
The location where Rothstein is serving his punishment has remained top secret because prosecutors and prison officials think he could be in danger because of his cooperation against people with ties to organized crime. Though Rothstein gave a series of depositions under tight security in the federal courthouse in Miami in late 2011 and 2012, the public and reporters were forbidden from attending. Official transcripts were released later.

Yours truly was also quoted along with some other lawyers:

"The government can't just hide an exculpatory witness and ask for exorbitant amounts of money to produce her accuser so she can confront him in court," said Richard Rosenbaum, a Fort Lauderdale defense attorney who is not involved in the case.
Rosenbaum said he heard from attorneys representing other defendants accused by Rothstein that it would cost an estimated $20,000 to bring Rothstein to testify in South Florida. The U.S. Marshals Service did not immediately reply to a request for comment.
Though Rothstein's allegations are documented on a transcript, Rosenbaum said Kitterman's defense can't "cross-examine the transcript."
Recent revelations in court that Rothstein was helping his soon-to-be ex-wife Kim hide and sell more than $1 million worth of jewelry – after Scott Rothstein was supposedly cooperating and coming clean with prosecutors – have inflicted further damage on Rothstein's trustworthiness as a witness and could make him helpful to the defense, Rosenbaum said.
"It shoots his credibility to pieces," Rosenbaum said of the violation of Rothstein's agreement with prosecutors to tell the truth and confess all of his crimes. "It's also great fodder for the defense when they have Scott on the witness stand … because there he is basically double-timing the prosecution."
David Oscar Markus, a criminal trial and appellate lawyer based in Miami, agreed.
"Rule No.1 of criminal law is 'never trust a rat.' When you're talking about Scott Rothstein, the rat of all rats, Rule 1 is gospel. The feds should know better, but they generally ignore Rule No. 1," Markus said.

SCOTUSblog for sale (UPDATED with Kim Rothstein's sentence)

I wonder how much it will go for. We can ask co-founder Amy Howe at tomorrow's federal bar luncheon.  Here's the AP:

The blog got a huge boost in credibility when it hired veteran reporter Lyle Denniston, who began covering the Supreme Court during the Eisenhower administration. Goldstein attracted a deep-pocketed sponsor in Bloomberg Law, the legal research unit of Bloomberg LP, and says he now spends $500,000 a year on the blog. The relationship with Bloomberg is in its third and final year, Goldstein said.
Next year, Goldstein said he intends to sell SCOTUSblog. To that end, he wants a formal press credential for Denniston, whose pass is courtesy of a Boston public radio station for which he works only rarely, and maybe even Howe.
The formal recognition he seeks is part of a series of moves aimed at making SCOTUSblog more attractive to prospective buyers. "We put more effort into covering the Supreme Court than any other organization in American history," Goldstein says, including in his claim even specialty legal publications like the American Lawyer.
The court, though, has remained noncommittal about how to treat SCOTUSblog. Court spokeswoman Kathy Arberg said she is reviewing the credentialing process for the first time in nearly 40 years. "We won't act on any pending requests until we have completed that process," Arberg said.

I'm also putting this blog for sale if anyone is interested... We'll start the bidding at $1 million.



In other news, Kim Rothstein is to be sentenced today.  I really don't see how sending her to jail does anyone any good.  Probation is sufficient here.  The Sun-Sentinel has background on her sentencing memo by David Tucker:

Just days before Kim Rothstein will be sentenced for hiding expensive jewelry from federal authorities, the former socialite has filed for divorce from her imprisoned Ponzi schemer husband, court records show.
"Last week, Kim filed for divorce from Scott Rothstein," her attorneys wrote in a sentencing memo filed Friday in federal court in Fort Lauderdale.
Her husband physically and mentally abused her, openly cheated on her, controlled her every move and kept her in the dark about his crimes, her defense team said.
When she confronted him, she said, he yelled at her: "You can't walk away from me, Kimmy. I'm the President of [expletive] Florida and I'll say when you can come and go!"
Kim Rothstein and her friend Stacie Weisman are to be sentenced Tuesday afternoon. Both women admitted they tried to hide about $1 million worth of jewelry from federal authorities after Scott Rothstein admitted he ran the biggest investment fraud scheme in South Florida history.
It was her husband's idea to hide the jewelry from prosecutors and bankruptcy authorites who were seizing the couple's ill-gotten assets, Kim Rothstein's defense attorneys say, but she takes full responsibility for doing it. The couple communicated through coded letters about their plan while Scott Rothstein was held at a secret location before he was imprisoned, the lawyers wrote in court records.
"Kim is fully responsible for her behavior. However, it was her husband, Scott Rothstein who originally requested that she take some family heirlooms, watches and other items of value as insurance," her lawyers, David Tucker and David Kotler, wrote in court records. "Scott also recommended that Kim turn these items over to someone whom she trusted to sell them."
Kim Rothstein claims that through their coded letters, her husband supervised the sale of the assets they were trying to hide from authorities and also her attempts to get the loot back so she could "come clean" with authorities after realizing how much legal trouble she was in.

UPDATE -- Judge Rosenbaum sentenced Kim Rothstein to 18 months in prison.