FORT LAUDERDALE, Fla. _ Notorious Ponzi schemer Scott Rothstein isn't entitled to any cut in his 50-year federal prison term and can't force prosecutors to recommend a reduction, a judge ruled Monday.
Rothstein, 55, pleaded guilty to orchestrating a $1.4 billion Ponzi scheme after the massive fraud, which he operated at his downtown Fort Lauderdale law firm, imploded in late 2009.
Rothstein and his attorney have spent the last several months trying to persuade the sentencing judge to side with them and require federal prosecutors to recommend a cut in Rothstein's punishment.
The defense argued that prosecutors improperly withdrew their offer after Rothstein cooperated in the investigation, briefly worked undercover for them and pleaded guilty to the federal charges.
Prosecutors argued that Rothstein, a disbarred attorney, violated the explicit terms of his plea agreement by lying to them and committing additional crimes after he signed the contract.
On Monday, Senior U.S. District Judge James Cohn, the sentencing judge, filed a nine-page ruling that prosecutors were correct and Rothstein was wrong.
The terms of the agreement stated that prosecutors could bow out if Rothstein failed to comply with what he promised, failed to testify truthfully, or falsely implicated any person.
"This adequately put Rothstein on notice of the potential consequences of his untruthfulness," Cohn wrote.
Court records show Rothstein lied to prosecutors and investigators and attempted to help his then-wife, Kim Rothstein, to hide assets. Kim Rothstein, her friend and one of her attorneys all served prison time for their roles in trying to conceal some of the couple's assets, which were supposed to be turned over to prosecutors and bankruptcy officials.
Veteran attorneys say there's a golden rule that applies to every federal plea agreement that involves cooperation: "If you commit new crimes or lie to prosecutors or investigators after you make the deal, you won't get the benefits you were expecting."
Rothstein's defense attorney Marc Nurik said he hadn't had a chance to fully study the judge's ruling or speak with Rothstein.
"It's too soon to say what's next," Nurik said.
As part of his plea agreement, Rothstein gave up his right to appeal _ a very common feature of federal plea agreements in South Florida. But it's still possible, and probably likely, that he will still try to appeal the ruling.
