FBI: Alleged Ponzi scheme could top $1B

FORT LAUDERDALE, Fla., Nov. 12 (UPI) -- An alleged investment scam by Florida lawyer Scott Rothstein could top $1 billion, an FBI official said Thursday.

"When all is said and done, this scheme could well exceed one billion dollars," FBI Special Agent in Charge John Gillies said at a Fort Lauderdale, Fla., news conference.

He also said others may have been involved in Rothstein's alleged Ponzi scheme, saying, "I do not believe this was a one-man show."

Rothstein, 47, has not been charged with any crime. His lawyer, Marc Nurik, declined to comment on the case.

Prosecutors accuse Rothstein of stealing hundreds of millions of dollars from investors who bought bogus employment-discrimination legal settlements from him since 2005.

Dozens of federal agents raided his law offices and confiscated his waterfront home and other properties last week, The Miami Herald reported.

Asked why the FBI had not arrested Rothstein, Gillies responded: "We will investigate this in a timely manner but we won't be rushed. We're far from over."

A U.S. Internal Revenue Agent at the news conference said investigators sought information from investors who believe they were scammed by Rothstein so authorities can develop a list of alleged victims to fortify their case against Rothstein.

The IRS is also looking at U.S. and foreign bank accounts to determine where Rothstein may have stashed money collected from investors, IRS Acting Special Agent in Charge Gilbert Garza said.

"We look at every avenue and every possibility around the world," Garza said.