Scott Rothstein to be arrested tomorrow (Tuesday) -- NUMEROUS UPDATES BELOW

The Herald broke the story here:

Scott Rothstein, the flashy Fort Lauderdale attorney who authorities say ran a $1 billion investment scam while acting like a philanthropic tycoon, is expected to be arrested Tuesday on a federal racketeering charge, sources familiar with the case said.
Rothstein, who had fled to Morocco in late October but returned in early November, is expected to appear at a magistrate hearing to face the RICO conspiracy charge at the federal courthouse in Fort Lauderdale.
While under federal watch in November, Rothstein cooperated with prosecutors and provided them with details of his Ponzi scheme, involving the sale of fabricated legal settlements to wealthy investors.FBI and IRS agents also raided his Fort Lauderdale law office and seized his waterfront home and other assets.
Rothstein could not be reached for comment, and his attorney, Marc Nurik, declined to say anything about his client's imminent arrest.
``Scott intends to see that all legitimate investors get paid back,'' Nurik said late Monday. ``Exactly how that's going to be done remains to be seen. He is sincere in his intent.''
Rothstein, 47, is likely to plead guilty soon while he is in custody. The U.S. attorney's office, meanwhile, will convene a grand jury to consider criminal charges against Rothstein's alleged co-conspirators -- including possibly former employees of his now-defunct firm.

Scott is still talking, this time to the Sun-Sentinel:

Rothstein called Monday, after I sent a text asking if he was about to turn himself into federal authorities, a rumor that was making the rounds."No, I'm not surrendering," he said. "I'm sitting here in the hotel with my attorney (Marc Nurik) and it's a very strange scenario."First we're fielding calls from people asking if we're in protective custody. No, I'm not in protective custody. Now we're getting calls if I'm about to surrender...So I guess you guys are giving me a heads up that I'm about to be arrested."

***

Said [Mark] Nurik: "Nobody's telling us that they're picking him up, and nobody's giving us any right to surrender...He's sitting here with me, talking about the case. He's mostly freaking out about being arrested."

So, he'll obviously be detained with no bond. But should he be?

UPDATE 9:30am Tuesday -- Rothstein has been arrested early Tuesday morning and he wasn't permitted to surrender. He will make his initial appearance this morning in Ft. Lauderdale before Judge Robin Rosenbaum.

SECOND UPDATE -- No bond... Stipulation to detention...

THIRD UPDATE -- Rothstein was charged by way of infomation, which means he is definitely cooperating. Still strange to me that they simply wouldn't indict him. Here's the information, which has been assigned to Judge James Cohn.

Would you do 40 months for a billion bucks?

Bradley Birkenfeld would. He's the UBS banker who helped the government makes its case against UBS and all the tax cheats. Here's the New York Times story:

Bradley C. Birkenfeld was sentenced to 40 months in prison for helping rich Americans dodge their taxes. Now he is hoping for a bit more — a few billion dollars more.
Mr. Birkenfeld, a former private banker at the Swiss bank UBS, won the enmity of his peers by violating the omerta of Swiss banking: He divulged the tax evasion secrets of UBS, the world’s largest bank by assets, and its well-heeled American clients. As part of a deal with federal prosecutors, he admitted to, among other things, helping to smuggle diamonds in a tube of toothpaste.
Now, as thousands of wealthy Americans seek amnesty for keeping illicit, offshore bank accounts, Mr. Birkenfeld and his lawyers hope to use a new federal whistle-blower law to claim a multibillion-dollar reward from the American government. If they succeed — and legal experts say the odds are pretty good — it would be the largest reward of its kind.
Mr. Birkenfeld, who is to begin his prison term as soon as January, is being represented by the executive director of the National Whistleblowers Center, Stephen M. Kohn. Mr. Kohn successfully represented Linda Tripp, who helped expose the Monica Lewinsky scandal of the Clinton years.
“We are seeking at least several billion dollars,” Mr. Kohn said.



So, how much would it take you to do 40 months in a federal pen:

I would do 40 months in federal prison for:
	$100,000
	$500,000
	$1 million
	$5 million
	no amount of money
pollcode.com free polls

Thanksgiving weekend blogging

The Miccosukee Tribe of Indians was certainly thankful to Judge Seitz on Thanksgiving Day. Just hours before we all headed home on Wednesday to defrost our turkeys, Judge Seitz issued an order stating that she was “convinced that the Tribe will succeed on the merits” after a two-day preliminary injunction hearing last week seeking to halt construction on 21-mile “Loop Road” in the Everglades. The DBR’s article is here. Judge Seitz found that “the Government failed to comply” with environmental laws prior to starting the project. Michael Tein represented the Tribe at the hearing and accused the National Parks Service of a “cover up.” Mike produced Interior Department notes and memos indicating that government viewed public disapproval of the project as a “high risk” that would be handled with an “internal memorandum to file” instead of the full-blown public environmental study that federal environmental laws require. Apparently, the government was going to use money earmarked back in 2005 for “emergency Hurricane Wilma relief,” to pay for repaving the road, which Mike said had no hurricane damage. Mike’s brief charting out the alleged “cover up” is a fun read and I will post it shortly. After the hearing, the government agreed to delay the project another two weeks to allow for additional briefing. Judge Seitz said she would rule by December 14.

Breaking!!

The case against Ben Kuehne and the co-defendants has been dismissed by the Feds. Happy Thanksgiving.

UPDATE -- The government moved to dismiss the pending appeal against Gloria Velez and also moved to dismiss the entire indictment in the district court against Velez, Oscar Saldarriaga, and Ben Kuehne. The motion simply says that it is based on the changed circumstances from the Court of Appeal's decision and in the interest of justice. Indeed. It was signed by Ken Blanco, Deputy Assistant Attorney General.

UPDATE 2 -- Ben Kuehne issued the following statement:

On this, the day before Thanksgiving, I am gratified beyond measure that the United States Department of Justice has decided to abandon all charges against me. I have had throughout a deep and abiding belief that things would turn out well in the end. However, I did not know the end result would come about by decision of the Department of Justice. We are all fortunate to be able to say that we have a Justice Department whose goal is to try to do the right thing—not to win at all costs.

Although I would have preferred not to go through this experience, I am also gratified that my case has been the occasion for an important precedent-setting legal ruling by the District Court, recently affirmed by the Eleventh Circuit Court of Appeals, and embraced by the legal community, in preserving and protecting the Sixth Amendment right to counsel. This ruling deals with an area of law that is close to my heart. It is to the right to counsel in criminal cases that I have dedicated much of my career at the Bar. I want to, once again, thank the many members of our community who have, over the past two years, so consistently expressed their confidence in my innocence. Throughout this period, I have continued to do what I have been trained to do, and what I love most, which is to practice law. I am grateful to the many clients who have reposed their confidence in me by seeking to utilize my legal services.

I am also grateful to my amazing lawyers, John Nields, Jason Raofield, and Laura Shores from Howrey in Washington, D.C., and my good friend, Jane Moscowitz, from Miami. I wish to thank them for their skill, dedication, and commitment to me and my case.

Finally, throughout this legal drama, my greatest strength has been the unsinkable spirit and love of my wife, Lynn, and our entire family. I want to thank them for knowing who I am, and of my sincere dedication to the law.

Escape From Dubai

In another this-is-too-good-to-be-true story, Curt Anderson covers former French intelligence officer Herve Jaubert, who believed he was essentially being held captive in Dubai when his passport was confiscated by authorities amid a dispute with his employer, a powerful government-run conglomerate. He claimed he was threatened with torture and worried each day he would be arrested. From the AP article:

So Jaubert disguised himself as a Muslim woman and fled the country. The accomplished diver hid scuba gear under the head-to-toe abaya. He swam out to the area's only patrol boat and cut the fuel lines. Then, he said, he launched his rubber dinghy, started the motor and piloted it six hours to meet an awaiting sailboat.
Now he's in South Florida, embroiled in a federal lawsuit over an ill-fated business venture with Dubai World Corp., which says the 2008 escape story is one of his many lies. Jaubert sued the company, claiming the failed plan to build recreational submarines for tourists and the super-wealthy cost him millions in lost business opportunities.
"I lived with fear in my stomach for more than a year. Every day when you wake up, you expect to be picked up by the police," Jaubert said.

And we even get a video!




In other words, we should all be thankful that we weren't in Mr. Jaubert's shoes. Think Midnight Express:



On that note, Happy Thanksgiving!

The U

Friends of Blog Alfred Spellman and Billy Corben (of Cocaine Cowboys fame) are now coming out with the U, which will air on ESPN December 9. Barry Jackson has a piece on the documentary today. Apparently, UM didn't cooperate... I never understand that. The movie is going to get made; you might as well cooperate. From Jackson:

Inside a Miami Beach office that feels like a not-too-reverential Hurricanes shrine, the finishing touches are being applied to the documentary of record on the University of Miami football program.
Stacks of old newspaper clippings and UM media guides sit atop a table. A Ray Lewis action figure poses menacingly on a desk, and a stuffed ``Ibis'' lurks across the room. A UM pin cushion and Canes pillow are propped on the couch.
Director Billy Corben and producer Alfred Spellman aren't only accomplished filmmakers -- they're also former UM students. Corben believes Canes fans will be pleased when their two-hour documentary, The U, airs at 9 p.m. Dec. 12 on ESPN, in a high-profile slot following the Heisman Trophy show.
``For Canes fans, this will be a reminder of what they loved about this team. For Canes haters, this will be a reminder of what they hated about this team,'' said Corben, who has crafted six films with Spellman, most notably Cocaine Cowboys. ``I'm also hoping the haters might walk away with some passing appreciation of what the team brought to the table in terms of their pop culture contributions, the merger of sports and entertainment, the style of game played.
``The criticism of the team has been well-documented. We certainly review it. But this is really a Canes talk-back, a Canes rebuttal kind of piece. There's no dearth of incredible highlights of both sensational plays and over-the-top celebrations.''
UM WON'T PARTICIPATE
But Corben said UM refused to participate and would not allow the filmmakers to interview coach Randy Shannon, former athletic director Paul Dee or former president Tad Foote, though old sound bites from Foote appear in the film. According to Corben, former coach Dennis Erickson and several former Hurricanes players said they disregarded UM's request that they not grant interviews.
``It upset me to no end,'' Corben said of UM's resistance. ``I felt disrespected and unappreciated by my alma mater. Early on, [UM athletic department spokesman] Mark Pray told me, `You should rethink even doing this project.' It was a display of rudeness, disrespect and ignorance. UM has a persecution complex about that era.'' As a result, Corben said he resigned from UM's Citizens Board, which supports the university's philanthropic efforts and promotes UM's programs.
Jackie Menendez, UM's vice president/communications, said the school declined to allow the interviews or participate in the project because Corben wasn't willing to allow UM officials to read the script in advance. Corben said he never was asked for a script -- ``a documentary doesn't have a script'' -- but that he sent UM a treatment, which is a two-page synopsis of the project.

When Devin Hester heard that UM wasn't cooperating, this was his reaction, showing his Bear/bare behind.

The movie should be great. I'm looking forward to it. Luke Campbell has the title track:



In other news, a Miami pastor was convicted before Judge Huck yesterday after a lengthy trial. He was convicted of committing $7 million in fraud.

Rothstein was apparently paying his lawyers and staff with ponzi proceeds. This keeps getting uglier and uglier. Bob Norman has pics of his house and lots of other news.

An agent who was kidnapped in Colombia has been released:

About three hours later, ``Fat Man'' returned to the cabin with one of his men, who told Ortiz that they knew he was a federal agent.
They were visibly nervous, Ortiz told the FBI.
The man removed Ortiz's handcuffs, repeatedly saying, ``Our apologies, brother.''
Once his hands were free, Ortiz saw that his apologetic guard carried a revolver in a belt holster and asked him for it. The man surrendered it.
Ortiz also asked for a car, a demand accepted by his kidnappers. One of them drove him to the city.
Ortiz arrived on his own at the hotel, where a contingent of Colombian police officers and U.S. agents were waiting for him so they could take him immediately to Bogotá.

Did you know that the Sears Tower is now called the Willis Tower?

I sure didn't.

Anyway, the leader from the Liberty City group -- Narseal Batiste -- who was convicted of attempting to blow up that building was sentenced to 13 1/2 years by Judge Lenard. She sentenced brothers Burson Ausgustin, 24, and Rotschild Augustin, 26, to six and seven years in prison. Patrick Abraham, 30, received more than nine years and 34-year-old Stanley Phanor, eight years. Prosecutors had asked for 70 years for Batiste and 30 years for the others. I was happy to see that Judge Lenard rejected those requests. From the BBC:

Sentencing Batiste, US District Judge Joan Lenard said: "You've done great harm to yourself, your family, the young men who were your followers, and you've violated the trust of your country."
Batiste apologised for the plot in court, saying he had "wanted respect".
"I wanted to be this person that I really wasn't. I've never been a violent person," the Associated Press news agency quoted him as saying.

Anyway, hope you have a nice Thanksgiving week... I'm trying to figure out my new iPhone. I think I miss my BlackBerry....

News & Notes (Fins edition)

It's been a long day, so I'm trying to cheer up in watching the Fins. So far, so good. 14-3 as we speak. Here we go with some news & notes:

1. Who wants to be a Magistrate? There's an opening in the District. The salary is $160K and to apply, you need to be less than 70, a member in good standing of the bar for 5 years, and not related to any judge in the district. Chief Judge Moreno has put together this selection committee:


Chair:David Rothman, Esq.
Rothman & Associates, P.A.


Georgie Angones (non-attorney)
Assistant Dean, Development & Alumni Relations

Jacqueline Becerra, Esq.
Greenberg Traurig PA

Robert Brochin, Esq.
Morgan Lewis & Bockius

Maria Christina Enriquez (non-attorney)

Paul Huck, Jr., Esq.
Colson Hicks Eidson

Manuel Kadre, Esq.

Todd Omar Malone, Esq.
The Malone Law Firm

Sonia Escobio O'Donnell, Esq.
Jorden Burt LLP

Vivian Perez-Siam (non-attorney)

Abigail Price-Williams, Esq.
Miami-Dade County Attorney's Office

Joseph Raia, Esq.
Gunster Yoakley & Stewart, PA

Alejandro Soto (non-attorney)
President & CEO, Insource, Inc.


Let's hope the committee acts more quickly than Obama.

2. More Liberty City sentencings today (AP). Judge Lenard has been sentencing the defendants to what looks like reasonable sentences in light of the facts of this case even though the government has been asking for 30+ year sentences:

Four men described as soldiers in a terrorism plot to destroy Chicago's Sears Tower and bomb FBI offices have each been sentenced to less than a decade behind bars, far less than federal prosecutors sought.
U.S. District Judge Joan Lenard, in sentencing hearings Wednesday and Thursday, said the four were followers who participated far less than ringleader Narseal Batiste in discussions about possible terrorist attacks. The conversations were recorded by the FBI using an informant posing as an al-Qaida operative.
The plot never got past the discussion stage, which has led defense attorneys and national terrorism experts to describe the case as overblown since the "Liberty City Seven" were arrested in June 2006. Lenard appeared to share that sentiment, at least for the four who were sentenced.
"As I see this case, these young men were looking for something. I don't know, maybe it was their naivete and youth that made them fall under the influence of a man with a need to control and they became his followers," Lenard said.
Prosecutors sought between 30 and 50 years in prison for each of the four men, with Batiste facing a maximum of 70 years when he is sentenced Friday. They were convicted in May in the third trial of the case following a pair of mistrials, and two of the original suspects were acquitted.
Lenard sentenced Batiste's self-described "No. 1 soldier," 30-year-old Patrick Abraham, to just over nine years Thursday. Stanley Phanor, 34, got eight years and two other men were sentenced to even less time Wednesday. Lenard said a terrorism enhancement that applies in each case would result in an unreasonably harsh sentence, so she opted for leniency.
Abraham, a Haitian native who has been jailed since his 2006 arrest, apologized for what happened but insisted he never sought to be a terrorist.
"I am not nobody's enemy," he said. "I am not the government's enemy."

Batiste to be sentenced next.....

3. Kathy Williams was honored by UM yesterday. I asked one of my favorite readers who was there to give me a quick summary of the event:

Kathy Williams received the Lawyers in Leadership Award last night from UM's Center for Ethics & Public Service for her "dedication to public citizenship and leadership." Examples of Kathy's professionalism, leadership, dedication, and intellect, were highlighted by several speakers (Michael Caruso, Celeste Higgins, and Ricardo Bascuas), and included the fact that Congress cited Kathy's FPD's office as a model defender's office. Spotted in the packed room were Judges Moreno, Seitz, O'Sullivan, and Palermo. Kathy's speech was short and sweet, thanking all those who guided her and expressing gratitude for being able to "work with her heroes."

Even if you don't know Kathy, you've probably benefited from her national and local work related to indigent defense. Congratulations to her for this well-deserved accolade.

4. Prof. Bascuas, a FPD alum, spoke at Kathy's event. If you haven't recently, you should check out his blog. Lots of fun stuff.

5. Tom Withers writes in re his case below:

Mark Shelnutt was and is innocent of each and every charge brought against him. Mark represents what is good and right about criminal defense lawyers. He tries to right wrongs when he sees them. He brings a passionate intensity to defending his clients. And, most importantly, he believes in our system of justice and trusted the jury to fairly listen to the evidence, which they did.