Fund manager linked to alleged scheme

FORT LAUDERDALE, Fla., Nov. 25 (UPI) -- Florida hedge fund manager George Levin had extensive dealings with attorney Scott Rothstein's alleged massive Ponzi scheme, court documents indicate.

Documents in a lawsuit against Levin filed Friday include an offering memo drawn up April 30 by for investors in Levin's new hedge fund aimed at wealthy clients. The memo indicated he was doing as much as $75 million in business per month with Rothstein, the South Florida Sun-Sentinel reported.

Rothstein, of Fort Lauderdale, Fla., is facing a separate suit from his own investors, who claim he collected hundreds of millions of dollars in a financial scam in which they were told they were buying instruments backed by secret legal settlements.

Court documents revealed Levin's Banyon companies had bought more than $1 billion in legal settlements from Rothstein at a cost of $657 million, the newspaper said. The memo reportedly indicated that by the end of March, Levin's companies had been paid $531 million in returns, while listing another $559 million still due from the investments.

Dozens of FBI and Internal Revenue Service are reportedly investigating Rothstein.

The Sun-Sentinel said a spokesman for Levin denied the hedge fund manager knew Rothstein was operating an alleged Ponzi scheme.