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Ousted Law Firm Chairman Requests Disbarment in Wake of Fraud Probe
The move allows Rothstein, who has not been charged, to marshal resources for litigation, bankruptcy proceedings
Daily Business Review
November 19, 2009
Besieged Fort Lauderdale, Fla., attorney and political rainmaker Scott Rothstein is now picking his battles -- and trying to stay a lawyer is not one of them. The ousted chairman of Rothstein Rosenfeldt Adler has decided to surrender his law license, submitting a request of permanent disbarment on consent to the Florida Bar.
The bar confirmed Wednesday it accepted Rothstein's request, but it must be approved by the Florida Supreme Court. The upshot is that Rothstein would not have to defend himself against a Bar investigation for breaking any rules regulating Florida attorneys.
"While the case is very complex, it became evident that bar rules may have been violated," Bar president Jesse H. Diner said in a statement Wednesday.
The Bar is monitoring the federal investigation of Rothstein and has been in contact with the court-appointed receiver for the law firm, he said.
"This is a terribly unfortunate and tragic situation," Diner said. "The Florida Bar will continue to investigate any violations of its rules by other attorneys who may have been involved in this case."
Rothstein's attorney, former RRA colleague Marc Nurik, said his client did not want "to waste The Bar's time or the state's money. He felt it was appropriate to give up his law license, and this was the mechanism with which to do it," he said.
The move allows Rothstein to marshal his resources for civil litigation, bankruptcy proceedings and any criminal case. He has not been charged.
The FBI raided the firm's Fort Lauderdale office two weeks ago and said as much as $1 billion may have been invested in a fraudulent side business run by Rothstein. RRA has said millions of dollars is missing from its trust accounts under Rothstein's exclusive control.
Ken Marvin, The Bar's director of lawyer regulation in Tallahassee, said Rothstein would never be able to practice law again in Florida if the Supreme Court approves his request.
Marvin said the e-mailed request included some admissions by Rothstein, but it will not be made public until a hard copy is received by the Florida Supreme Court clerk's office.
"This happens when their hand gets caught in the cookie jar and there's video. It's kind of useless to fight and they want to avoid the costs and aggravation involved," Marvin said. "They figure, 'I'm going to lose my law license anyway. Why am I going to fight?'"
Nurik denied Rothstein's disbarment request contains any specific admissions.
"It's very vanilla," he said. "It doesn't go into specifics or details."
Craig Waters, spokesman for the Supreme Court, said Rothstein's request would have to go through an off-site security check before it reaches the court.
It remains unknown how Rothstein's voluntary disbarment would affect his position on the Judicial Nominating Commission for the 4th District Court of Appeal. Only two direct appointments by the governor have to be attorneys.
Sterling Ivey, Gov. Charlie Crist's spokesman, did not return a phone call for comment by deadline.
Rothstein donated heavily to the Republican Party and Crist's campaigns for governor and attorney general.
Nurik said Rothstein's wife, Kim, is standing by him.
