The Fort Lauderdale-based hedge fund that served as a primary feeder for disbarred attorney Scott Rothstein’s $1.2 billion Ponzi scheme won an appellate victory Wednesday in the Fourth District Court of Appeal, which revived a malpractice suit against the Las Vegas law firm that endorsed its massive flow of funds into Rothstein’s scam.
Banyon Capital LLC and affiliated companies blamed Vegas-based Hutchison & Steffen for their investments in what would later be known as one of the largest Ponzi schemes in U.S. history. Rothstein offered hefty returns on discounted structured settlements, luring thousands of participants to purchase assets that did not exist.
