FORT LAUDERDALE, Fla., Nov. 1, 2009 (GLOBE NEWSWIRE) -- Sonn & Erez, a nationally known securities litigation firm, is investigating claims that Scott Rothstein, a Fort Lauderdale attorney with strong Republican ties including to Florida Governor Charlie Christ, may be involved in a $100 million investment that imploded. Rothstein's law firm, Rothstein Rosenfeldt and Adler, has hired former U.S. Attorney Kendall Coffey, who stated in a New Times article that "The allegations (against Rothstein) do not involve the firm's law practice, they involve an investment business that Scott Rothstein created." The New Times article stated that Coffey confirmed that Rothstein's investment scheme involved purchasing "structured settlements," in which people sell large settlements in legal cases for lump sums of cash.
Jeff Sonn, Esq., a nationally known securities lawyer who has appeared as a Wall Street fraud expert for CNBC, commented that "Often these private investment schemes, in which many individuals invest in an unregistered hedge or mutual fund with the intent to share profits are nothing more than unregistered securities, that may not be exempt from state and federal securities laws. In many instances, promoters claim these are private investments that need not be registered as they are allegedly exempt under Regulation D of the federal securities laws, but often they fail to meet all the exemption requirements, including failure to file a Form D with the SEC. If the securities are not exempt from registration, investors would be able to seek recision of their investment and to hold all promoters, and possibly others, for the loss." Sonn added, "I have heard that one of the funds run by Rothstein was named 'Banyon Capital,' but I have not yet seen the offering documents." Sonn said, "My law firm had seen Scott Rothstein living a very large lifestyle, including armed body guards, police protection, very expensive cars, luxury homes, jewelry, donations, and appeared to be something out of a Great Gatsby movie."
Sonn & Erez PLC is investigating allegations against Scott Rothstein and the Banyon Capital fund. Sonn & Erez PLC is a nationally recognized law firm that concentrates its practice on representing investors in securities arbitration and litigation. Sonn & Erez is an AV-Rated law firm that represents investors nationwide in investment fraud cases. The firm has represented individual and institutional investors against most major Wall Street brokerage firms in claims involving stocks, bonds, hedge funds, structured products, options, auction rate securities, mutual funds, and asset backed securities.