Rothstein Settles with Heat – What's Next?
By Kluger Kaplan July 9, 2012
Rothstein Settles with Heat – What’s Next?
By: Bruce Katzen
Last week the Miami Heat, Braman Motors, the Downtown Jewish Center of Fort Lauderdale and others reached settlements with the trustee in the RRA bankruptcy case. The settlements brought in just over $1 million to the creditors of RRA, a drop in the bucket compared to the $1.4 billion fraud perpetuated by Scott Rothstein. While big names like the Heat and Braman drew substantial media coverage, the real news is going to come if and when the trustee settles with several large New York hedge funds that were able to recoup most of their investment in the Ponzi scheme before the fraud was uncovered in late 2009. Their early exit enabled them to recoup most of their investment at the expense of later investors. It will undoubtedly be interesting to see how the trustee handles the larger clawback claims now that he is quickly disposing of the smaller ones.