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Florida Law Firm Asks to Be Dissolved

  Legal Business  -   POSTED: 2009/11/04 14:48

A prominent Fort Lauderdale law firm is asking a Florida court to dissolve it amid allegations that substantial amounts of money are missing from accounts created by the firm's co-founder, Scott Rothstein.

The possible dissolution of Rothstein Rosenfeldt Alder PA would amount to a repudiation of the politically well-connected Mr. Rothstein by his law partners and pose a potential embarrassment to the many Republican politicians in the state who have enjoyed his support. The 47-year-old attorney has boasted of a rags-to-riches ascent from a modest New York childhood in the Bronx to a lifestyle of luxury cars and sumptuous homes.

If the firm is dissolved it could meet the same fate as Dreier LLP, a New York law firm that was closed after its founder, Marc Dreier, was arrested for defrauding investors by selling bogus notes. Earlier this year, Mr. Dreier was sentenced to 20 years in prison. It is still unclear, however, whether the Florida firm would have to disband.

Mr. Rothstein didn't respond Monday to requests for comment. In an email exchange with The Wall Street Journal last week, he said he had "nothing to hide at all." Mr. Rothstein's attorney, Marc Nurik, didn't reply to requests for comment.

A spokesman for the law firm said it has launched an internal probe focused on a business Mr. Rothstein started that involved selling purported legal settlements to investors. He said the firm has contacted the U.S. attorney's office in Miami. At least one of the investors—Banyan, a Fort Lauderdale investment firm—has also contacted the U.S. attorney's office, which declined to comment on the matter.


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