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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:

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About the author
You've got the job of managing your money. No one in school taught you how. But you and I, we can teach each other, how to handle it, how to save for retirement, how to make money last, how to educate the kids, how to make a budget work. The conversations I have with my readers are fun. Money's important, but discussing it does not have to be boring.

Harriet Johnson Brackey 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.

Brackey has worked at Business Week magazine and at USA TODAY, where she was a founder and part of the original staff of the Money section at the country's first national newspaper. After nearly 11 years there - spent covering the 1980s bull market, the insider trading scandals, the 1987 crash - Brackey left Washington, D.C., and came to The Miami Herald. She spent the next decade writing a column about personal finance that chronicled the stock market's Internet boom and bust, as well as the popular Money Makeover features.

Brackey also has done commentaries for Marketplace Money, which airs on National Public Radio and The Nightly Business Report which is broadcast on more than 250 PBS television stations nationwide. She also has been a radio guest on WLRN’s Miami Herald News.
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