Scott Rothstein Takes Witness Stand In Trial Of Former Employee

, Daily Business Review

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Scott Rothstein
Scott Rothstein

Rothstein said Banyan's top executive, ex-convict Frank J. Preve, was an architect in the scheme and helped invent lies to keep it afloat.

As the top feeder fund, Banyan pumped $775 million into the fraud, and Rothstein testified Preve was in on the Florida Bar scheme.

Rothstein also said he paid a TD Bank official, believed to be former regional vice president Frank Spinosa, up to $75,000 to create fake documents to assure investors their money was safe in law firm accounts.

Miami attorney Sam Rabin rejected Rothstein's accusations against his client, Spinosa, as untrue.

"One need only consider the source," Rabin said. "Mr. Rothstein has no credibility due to the numerous lies, misrepresentations and false accusations. Even the government now declines to vouch for him or call him as a witness."

Rosenfeldt's attorney, Bruce Lehr, a partner at Lehr Levi & Mendez in Miami, asked, "Who would take the word of a proven pathological liar?" Rosenfeldt is expected to be called later as a defense witness.

Attorney William Scherer, a partner at Conrad & Scherer in Fort Lauderdale who represents numerous Rothstein investors and was involved in two rounds of civil depositions by Rothstein, said Rothstein's testimony was "accurate from everything I know."

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