Rothstein: Did investors see the red flags waving?
Here's my Sunday column....
The Scott Rothstein case is far from complete. But investors can learn a few things from the unfolding story of the Fort Lauderdale attorney who is alleged to have taken at least $100 million from investors who wanted to get a piece of lucrative legal settlements. The money is missing.
What exactly was he promising. Huge returns, on unregistered investments, held in accounts that no one audited, with the promise of a payout that depended solely on his word.
Of course, it wasn't ever described that like that.
Here's how these deals worked, based on the offering memo he was showing to local investors, obtained by the Sun Sentinel.
http://www.sun-sentinel.com/business/fl-harriet-110809-20091109,0,6569475.column:




Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.