Four low-level players investigated in the Scott Rothstein Ponzi case are set to plead guilty soon, no later than tomorrow, according to sources close to the investigation.
I don’t have names yet, but those set to plea have cooperated with investigators and prosecutors and will likely receive light sentences. This is the first wave of arrests, more are expected in coming weeks — and they likely won’t be extended the same leniency.
These four are the first since Scott Rothstein and his right-hand woman Debra Villegas both pleaded guilty and received lengthy prison sentences. Rothstein was sentenced to 50 years, Villegas to ten.
UPDATED: I suppose we can play an elimination game at this point. I contacted the attorney for Irene Stay, the former Rothstein Rosenfeldt Adler law firm chief financial officer. Stay handled financial and banking records for Rothstein and, according to Bill Scherer’s civil lawsuit, broke down crying down at a law firm meeting after Rothstein fled town. “I don’t want to go to jail,” the lawsuit contends she said when asked if there was $1 billion in the firm’s bank account (there was not). Stay’s Miami lawyer, Brian Tannebaum, told me his client is not among those being charged. “I imagine these four have been cooperating and are surrendering,” said Miami attorney Brian Tannebaum. “I can tell you that I have received no call from prosecutors and my client has not met with the government.”
I also spoke with Fred Haddad, who is representing name law firm partner Russell Adler. Not my client, said Haddad.