Federal authorities are seizing Fort Lauderdale attorney Scott Rothstein's properties -- sports cars, waterfront homes, power boats and bank accounts -- as part of a criminal investigation into his alleged multimillion-dollar investment scam.
Shortly before 10 a.m. Monday, two FBI agents, an IRS agent and two truck drivers were spotted in downtown Fort Lauderdale seizing Rothstein's fire engine red Ferrari Spider convertible.
The car was being towed near the intersection of Southeast Sixth Avenue and Second Street close to the Rothstein Rosenfeldt Adler law firm, where Rothstein is suspected of carrying out a massive fraud against dozens of investors. Rothstein, 47, has not been charged.
FBI agents were also seen shortly before 11 a.m. at Rothstein's Fort Lauderdale home at 30 Isla Bahia Dr. Agents appeared to be logging in information about Rothstein's cars, including a silver Rolls Royce, a white Bentley with a blue convertible top and a white Cadillac Escalade. A few FBI agents and an IRS official were outside manning the gate while several others were inside.
National Liquidators, which had a government contract to seize his boats, took a 33-foot Aquariva, 55 foot Sundancer and 87 foot Warren, said spokeswoman Alayna Gossan.
``We have them and will maintain the care and custody of the vessels,'' she said.
FBI agents on the scene in downtown Fort Lauderdale confirmed they were towing Rothstein's Ferrari.
An FBI source on the scene referred a reporter's phone call to Jennifer Kuehl, a spokeswoman with the criminal division of the IRS. Kuehl declined to comment.
``Everything is under seal right now,'' she said.
Federal authorities obtained seizure warrants Sunday night signed by U.S. Magistrate Judge Lurana S. Snow to confiscate Rothstein's cars, homes and other assets, according to sources familiar with the criminal investigation into the lawyer's alleged Ponzi scheme.
One warrant, obtained by The Miami Herald, reads: ``Warrant to seize personal property subject to civil forfeiture.''
Authorities are able to obtain warrants to seize Rothstein's properties -- even before criminal charges are filed in federal court -- because they have evidence to support that the lawyer acquired those assets with ill-gotten gains from his alleged investment scam. The U.S. attorney's office is using the tool of a civil forfeiture action. Eventually, if Rothstein is indicted, prosecutors could transfer the inventory of his properties for criminal forfeiture.
Rothstein, who is staying at an undisclosed location under federal surveillance, has been accused by investors of stealing hundreds of millions of dollars and by his law partners of wiping out their firm.
The federal seizures come as some investors prepare to sue Rothstein and his law firm, and to block the firm from grabbing any recovered assets for itself in a receivership case in Broward Circuit Court.
During a brief court hearing Monday in Broward, the receiver -- Herbert Stettin -- said that Toronto Dominion Bank is cooperating and providing access to financial records.
The bank reported that it will take about three weeks to finish the process of turning over records.
``We have moved mountains this weekend,'' said Glenn Goldstein, attorney for the bank.
Attorney Bill Scherer told Judge Jeffrey Streitfeld that he had filed a motion to intervene on behalf of investors. Scherer represents investors who lost at least $98 million. Those investors wants to block Rothstein's law firm from collecting money recovered from political candidates, charities and other sources.
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