Up to $50 million in bank accounts and property the federal government seized from Ponzi schemer Scott Rothstein should instead have gone to a bankruptcy trustee of his defunct law firm, the U.S. Court of Appeals for the Eleventh Circuit ruled Wednesday.
U.S. District Judge James Cohn in Fort Lauderdale approved the forfeiture of Rothstein’s yachts, cars and other items, which make up most of the disputed assets. He also gave federal prosecutors the power to distribute $2.6 million left in his Rothstein Rosenfeldt Adler law firm’s bank accounts to Rothstein’s victims.
