Friday, September 3, 2010

Charities Suffer from Another Ponzi Scheme

This time the charities had not invested in the Ponzi scheme, but several Florida charities received gifts from Scott Rothstein, a man convicted of and sentenced to 50 years in federal prison.  A story on Monday said that charities were returning $1.6 million in donations, and a story today mentioned six charities in particular, including Dwyane Wade's foundation (Wade's World Foundation), that would be returning part of the donations they had had received. Investors will likely get little back:  they are owed $317 million and Rothstein left behind only $25 - 30 million. The paper describes the entire Ponzi scheme as involving $1.4 billion.  The bankruptcy court dealing with the bankruptcy of Rothstein's failed law firm is trying to find money that can be returned to investors and other creditors.  Yes, sadly, Rothstein was a lawyer.


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