From: To: jeevacationgginail.corn Subject: Rothstein Date: Fri, 28 Oct 2011 15:12:24 +0000 Rothstein's general counsel sued for $37.8 million Investors threatened to "go public" months before the Ponzi scheme unraveled By Jon Burstein Sun Sentinel 6:30 p.m. EDT, October 27, 2011 Scott Rothstein's Ponzi scheme was almost exposed eight months before it spectacularly imploded in October 2009, according to a $37.8 million lawsuit filed Thursday against the general counsel of Rothstein's law firm. Two investors threatened in February 2009 to "go public" with questions about Rothstein's investment scheme, prompting Rothstein to instruct his right-hand man David Boden to cut a confidential $4.25 million deal with them, allege the bankruptcy attorneys attempting to recover funds for Rothstein's victims. The bankruptcy attorneys are suing Boden for the $1 million he received while working at the Rothstein Rosenfeldt Adler law firm and an additional $36.7 million in damages. • Topics • Trials • Litigation • Bankrupt • See more topics » The lawsuit brought in U.S. Bankruptcy Court in Fort Lauderdale is the latest in a series of "clawback" cases brought by the legal team for bankruptcy trustee Herbert Stettin. Video: Heirloom necklace stolen off jogger's neck Stettin's attorneys allege Boden was a co-conspirator in Rothstein's Ponzi scheme, either actively participating in the investment fraud or ignoring so many red flags that he demonstrated a reckless disregard for the truth. Boden had to have known the returns Rothstein promised investors made no sense, according to the lawsuit. Boden's civil attorney, Todd Payne, could not be reached for comment Thursday, despite an attempt by phone. Boden gave a tearful deposition to the bankruptcy attorneys in April 2010, saying he had no idea Rothstein's wealth was built on lies. "You know, I didn't know the guy was a criminal; Boden said. Rothstein, 49, is serving a 50-year prison sentence after pleading