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Suit: Lawyer pocketed $1.2M in Ponzi money

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Published: Feb. 9, 2010 at 12:53 PM

FORT LAUDERDALE, Fla., Feb. 9 (UPI) -- The law partner of an attorney convicted of running a $1.2 billion Ponzi scheme has been sued for more than $1.2 million.

Russell Adler, a name partner in convicted lawyer Scott Rothstein's former Fort Lauderdale, Fla., firm, was hit Monday with a suit filed by bankruptcy attorneys who allege Adler profited by that amount from Rothstein's investment scam, The Miami Herald reported.

The compliant alleged Adler was overpaid by $580,000 and received an additional $655,000 in unpaid loans from Rothstein, who pleaded guilty last month to five counts of racketeering, fraud and money laundering in connection with a scheme to sell fabricated legal settlements to investors.

The Herald said the firm, Rothstein Rosenfeldt Adler, went bankrupt, and attorneys representing its creditors say Adler and his wife used ill-gotten proceeds to purchase a $475,000 New York co-op apartment in August, only two months before Rothstein's Ponzi scheme was exposed.

One of Adler's attorneys, Fred Haddad, told the newspaper his client would "vigorously" fight the bankruptcy suit.

Topics: Rothstein Rosenfeldt Adler
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