Tuesday, July 15, 2014

Another 5-year cap in the Rothstein web

This time to Frank Preve, the 70-year old COO of Banyon Investments LLC.  Even though the 5-year count in the information is a sure tell that the case has been resolved the DBR reports as follows:
Preve, Rothstein's point man at Banyon, was charged in a criminal information with one count of conspiracy to commit wire fraud. Usually, an information indicates a plea deal has been struck, but Preve's attorney—Ramon A. Rasco, a partner at Podhurst Orsek in Miami—told the Daily Business Review his client hasn't agreed to anything as of yet.
Rasco said the case against Preve is about "omissions," his failure to disclose to investors Rothstein's financial shenanigans in the months leading up to the implosion of the fraud in October 2009.
From July to October 2009, "Preve caused investors and lenders to pay more than $20 million to the Banyon Group by wire transfer for investments in confidential settlements," the information reads.
Rasco noted the information doesn't accuse Preve of having any direct knowledge of Rothstein's settlement financing fraud. "Considering the allegations that have been made against Frank over the years, it is a very, very watered-down version of events," he said.
Preve and Rothstein exchanged thousands of emails, but they met only a handful of times, and Preve did not have an office in Rothstein Rosenfeldt Adler's Fort Lauderdale office as alleged in civil suits, Rasco said.
"He did not have any knowledge of the Ponzi scheme, and he wasn't working with Rothstein, and he certainly did not benefit from it," Rasco said. "What the government is alleging now are basically technical violations."
Rothstein's scam was disguised as an investment strategy where Rothstein would purchase discounted confidential settlements in sexual harassment or employment whistleblower cases.


Bob Becerra said...

If there is no negotiated agreement regarding the charges/disposition, why bother waiving indictment?

Anonymous said...

White guy fraud cap = 5 years. Outrageous.

nonlawyer said...

Nice post. Fine. BTW, where was The Florida Bar, say in 2008-2009?

A pamphlet [fn1] published by The Florida Bar Public Information and Bar Services Department as a service for consumers states: "The Florida Bar disciplinary program has become the gold-standard for protecting the public." Yet somehow Scott Rothstein, at the time a member in good standing with The Florida Bar, was able to operate a massive $1.2 billion Ponzi scheme from the law offices of Rothstein Rosenfeldt Adler P.A. right under The Bar’s nose, and while serving on a Florida Bar grievance committee. Rothstein was also appointed August 25, 2008 by Florida Gov. Charlie Crist to serve as a Commissioner on the Fourth Appellate District Judicial Nomination Commission, arguably at the height of his racketeering activities, to which he plead guilty and on June 9, 2010 received a 50-year prison sentence.

[fn1] Hiring the Right Person to Help Me With My Legal Problems

So is former Gov. Crist going to be our next governor?

Anonymous said...

Yeah. AND worst of all, Dan Marino had his pitcure taken with him. Obvioulsy, we need a Minority Report system so that we know when somebody is doing something illegal while they are doing it or better yet, before they even do it.

Anonymous said...

"This Rothstein case has created a college industry."

-Fake Hugo Rodriguez

MC Waste Services, Inc said...


bad sentence may help perpetuate a horrible governor for four more years. geez- awful unintended consequences.