Rothstein Ponzi Scheme
Many people have heard of Madoff’s Ponzi scheme but there are many other Ponzi schemes that happen. Here’s an interesting case which is being managed by Kendall Coffey.
On Thursday David Boden who was the former General counsel of Rothstein Rosenfeldt Adler broke down in tears as he testified in his deposition about how he discovered a 1.2 $billion ponzi scheme. Boden had to stop the depostion multiple times times to compose himself as he recalled discovering millions of dollars missing from his former firms’s bank accounts.
He was given weak excuses as to where the missing money was at the same time that their largest investor offered to cover the missing money.
Boden stated that he had repeatedly asked the CFO to open the books but she refused saying only the founder could open the books. Finally they were able to get in touch with the bank and they saw the balance had gone from $13 million to $720k.
That same day the a former partner Nurick announced that he was leaving to represent Rothstein. On his departure, he mentioned names of people that could fill in including former US attorney Kendall Coffey.
Nurick came to a meeting the next day at Boden’s house and presented a hypothetical situation if they had known someone had commited a huge fraud. Boden propmptly threw Nurick out.
Boden was also put on the hot seat during the deposition and he was asked why he signed off on fake settlements. His answer was that he trusted Rothstein. Boden was asked if he knew any of the other plaintiffs, and he acknolwldeged having met two of them. Boden said he was comfortable with the settlements he had signed because he thought he had seen the supproting docs.
Boden was also questioned on why he even went to work for Rothstein to being with and he said he took the job because of a change in career and the bottom line was that he trusted Rothstein. This case is now in the hands of Kendall Coffey, so do keep updated with the latest news.
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