Kim Rothstein (Melanie Bell)
Now that Kim Rothstein has been sentenced for hiding more than $1 million in jewelry and other valuables, the liquidating trustee for her ex-husband’s defunct law firm wants to get his hands on the missing luxury items.
Michael Goldberg, the trustee for the former Rothstein Rosenfeldt Adler law firm, also is seeking a $2 million judgment against Kim Rothstein for hiding the assets during settlement talks in 2011.
Goldberg filed a motion Feb. 18 to enforce the previous settlement and for entry of final judgment. A hearing is scheduled March 27 on the motion before U.S. Bankruptcy Judge Raymond Ray in Fort Lauderdale.
“We have the right to seek a judgment under our previous settlement agreement because it’s clear she signed a false settlement agreement and submitted a false affidavit,” said Goldberg, chair of Akerman’s bankruptcy and reorganization practice. “She had to disclose all her assets, and she lied.”
The $2 million is spelled out in the settlement agreement as a penalty that the trustee could collect if it turned out Kim Rothstein was lying about her assets. Goldberg said he didn’t know if the money will be collectable. He also said he didn’t notify the U.S. attorney’s office about his motion and wasn’t sure whether prosecutors were seeking the same items under forfeiture laws.
Scott Rothstein is serving a 50-year prison sentence for masterminding a $1.2 billion Ponzi scheme from his former Fort Lauderdale law firm.
In May 2011, Kim Rothstein reached a settlement with former RRA trustee Herbert Stettin, who was tasked with recovering money for Rothstein victims. She agreed to hand over a diamond ring, dozens of designer shoes and an extensive wine collection that belonged to the couple, among other items.
Kim Rothstein was sentenced in November to 18 months in federal prison for hiding assets worth more than $1 million—something she said her husband directed her to do.
Goldberg’s motion lists withheld items including five diamond rings, 10 designer watches, two diamond bracelets, four diamond necklaces, five diamond earrings, a coin collection, 50 gold bars, fountain pens and cash.
“If not for Mrs. Rothstein’s intentional concealment of the missing assets from Stettin and/or failing to disclose that she had hidden or otherwise disposed of such property, the missing assets would have been included in the personal property turned over to Stettin pursuant to the settlement agreement,” Goldberg’s motion said.
Also sentenced for helping Kim Rothstein hide and sell the valuables were her friend Stacie Weissman, who received three months in prison, and her former lawyer, Scott Saidel, who was sentenced to three years in prison.