Suspected Ponzi schemer Scott Rothstein used the local police to further his criminal activity, federal authorities alleged Tuesday in a 34-page document laying out charges against the one-time lawyer.
Among the new allegations in the document: that Rothstein paid top police officials "gratuities'' in Ponzi funds.
Fort Lauderdale police were hired off-duty to guard Rothstein's Fort Lauderdale mansion, his Bova Prime restaurant and the Rothstein Rosenfeldt Adler law firm that the feds say was actually a Ponzi headquarters. Though city police officers aren't allowed to act as bodyguards, they are allowed to work off-duty guarding businesses. Occasionally someone throws a party and hires police to work a detail. In this case, the police chief allowed them to guard Rothstein's personal residence on a 24-hour permanent basis, the first and only time this has occurred in Fort Lauderdale.
The feds took aim at the arrangement, saying in their "information'' against Rothstein that it was done to divert law enforcement attention from the Ponzi. They also allege Rothstein gave "gratuities'' to top law enforcement officials. The agency is not named, nor are the alleged gratuities listed.
According to the feds: "Defendant Rothstein and other co-conspirators utilized funds illegally obtained through the 'Ponzi' scheme to hire members of local police departments purportedly to provide security for RRA and defendant Rothstein's personal residence. 'Ponzi' scheme funds were also used to provide gratuities to high ranking members of police agencies in order to curry favor with such police personnel and to deflect law enforcement scrutiny of the activities of RRA and defendant Rothstein.''
Rothstein had friends at Fort Lauderdale Police Department and at Broward Sheriff's Office. His relationship with BSO Lt. David Benjamin is under scrunity; Benjamin escorted Rothstein to the plane when he left with up to half a million dollars in cash for Morocco.
BSO spokesman Jim Leljedal said Tuesday an internal investigation of Benjamin and an outside consulting business he has is "active and ongoing'' but he has not been suspended. He has been reassigned from his job over Internal Affairs, though.
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