It’s been confirmed that two of the four people to be arrested are employees who worked as internet technology specialists for Scott Rothstein’s law firm. These two employees, who have yet to be named, created fake websites for Rothstein that were used to further his billion-dollar Ponzi.
My first source for the information came from local P.R. man Chuck Malkus, who is writing a book on Rothstein titled Magician Lawyer. He learned of the arrests through former law firm members. “They created fake bank websites, that assured them their money was in the bank,” said Malkus. “Every investor I’ve spoken with has told me, ‘But the money was in the bank.’ Well, what they saw were fake websites and bogus bank accounts that didn’t exist.”
Again, I confirmed from sources that Malkus is on the money. And this answers a key question about how Rothstein created those fake bank accounts.
“It’s more evidence of what an illusionist Rothstein was,” said Malkus. “He really was a magician.”
The Miami Herald is reporting that each of the four who will be arrested today will be hit with a single wire fraud charge. Again, all four are cooperating with the government and are expected to be given lenient sentences after they plead guilty.