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November 12, 2009

Scott Rothstein Structured Settlement Investment Fraud

by John Darer CLU ChFC CSSC RSP

The following press release was issued today by the FBI and IRS:

"The Miami Division of the Federal Bureau of Investigation (FBI) and the Miami Field Office of the Internal Revenue Service (IRS) are seeking information from individuals who have invested in the Rothstein Structured Settlement Investment (RSSI) or from individuals who have information that would be helpful to the investigation. To facilitate information gathering, the FBI has established a dedicated e-mail address and an informational telephone line 1-800-CALL-FBI, "Rothstein Option."

Details of the investigation cannot be discussed at this time, as the investigation is ongoing. However, the FBI and IRS are seeking to identify victims and to obtain any information to determine the extent of any potential fraud.

In an effort to determine the scope of the matter and the amount of losses that may be involved, investigators are requesting that individuals provide:

  • Basic contact information (name, address, telephone numbers, e-mail address.)
  • Amount of investments/losses with the Rothstein Structured Settlement Investment.
  • Whether you can verify your investments by providing the most recent statements.
  • Any additional information that may be helpful.

Information may be provided via dedicated e-mail address [email protected] or to informational telephone line 1-800-CALL-FBI, “Rothstein Option” (1-800-225-5324.) If you have investigative information that may aid the criminal investigation, you may also submit it via email or telephone. For those who would like to return funds received from Rothstein please call the 1-800 number and someone will get back with you with specific instructions on how to return the funds.

Hard copy documentation may be mailed to:

FBI Victim Assistance Program
Rothstein Investment
16320 NW 2nd Avenue
Miami, Florida 33169"

Comments

  1. Earlier today the FBI representative said that Rothstein scam losses could top $1billion. 10 days ago the number was $50-$100 million. Needless to say it's looking like Scott Rothstein is going to go away for a very long time.
  2. It is a pity that the IRS has chosen not to caption the words "structured settlement", given that a portion of the snake oil that Rothstein was allegedly peddling had to do with the sale or purchase of alleged interest in structured settlement payment rights.
  3. It is a pity that the IRS in endorsing this press release has chosen to ignore what is set forth as a definition of structured settlement in 5891(C)(1) of the Internal Revenue Code.
  4. It is a pity that the IRS has chosen to ignore the definition of structured settlement factoring transaction set forth in 5891(C)(3) of the Internal Revenue Code.
  5. Scott Rothstein is the scumbag's poster child. Scott Rothstein represents everything that is the antithesis to what the many honorable structured settlement consultants, registered settlement planners and sudden money financial advisors work to accomplish for their clients every day. It is therefore, patently unfair that the words "structured settlement" are not appropriately captioned to denote that what Rothstein's scam involved putative "structured settlements" or alleged "structured settlements" but apparently weren't structured settlements.
  6. I can't help but gloat a little about the irony dripping from cash now pusher factoring firm named Structured Settlement Investments, LP. I've long felt that the name of the company was misleading. Now, while there is no evidence of the company's involvement with Rothstein, the company's label is forever stained by the FBI and IRS label of the Rothstein scam as "structured settlement investment".

Posted at 11:52 PM in Internal Revenue Code, Internal Revenue Code (IRC), IRC 5891 Structured Settlement Factoring Transaction, Scott Rothstein Ponzi | Nothing to do with Structured Settlements, Scott Rothstein Structured Settlement Fraud, Structured Settlements in Florida, Structured Settlements in Fort Lauderdale FL |

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