The spirit of Scott Rothstein is alive and well ... in a local bankruptcy court as shown by the just announced "settlement" of the bankruptcy estate of Rothstein Rosenfeldt Adler with Gibraltar Private Bank & Trust. Unfortunately, its what you don't read in public reports that really counts since there are several "elephants in the ointment" in this so-called "settlement."
For the inquisitive, do a quick search for "in pari delicto in bankruptcy". Or simply look at the Eleventh Circuit case Official Com. of Unsecured Creditors of PSA, Inc. v. Edwards, 437 F. 3d 1145 (11th Cir. 2006).
Even quicker, in layman's terms, the concept of "in pari delicto" means the Rothstein Rosenfedt estate cannot sue, let alone settle, claims for damages to Rothstein's victims because Rothstein Rosenfedt was a perpetrator of the crime.
So what's going on here? The answer is to first remind oneself of a cardinal rule of local bankruptcy ethics: there aren't any when large $$$ are at stake. And the corollary rules: things are rarely what they seem; and follow the $$$.
Principal owners of Gibraltar bank are Berger Singerman honchos Paul Singerman and other unidentified Berger Singerman partners. Their investment in Gibraltar runs into the many millions but the full amount and degree of ownership is guarded with a level of secrecy that Iranian nuclear honchos can only envy. Berger Singerman is the lead attorney for the Rothstein estate.
Paul Singerman et al were Scott Rothstein's partners (co-shareholders) in Gibraltar bank. Because of normal due diligence standards, including the knowledge of Gibraltar owners of the extensive money laundering activities and who knew what and when, and recent Scott Rothstein's deposition disclosures on Gibraltar, it is clear Singerman honchos have a wealth of information about the involvement of Gibraltar bank's owners and employees ... and their liability. Of course, not a single Berger Singerman honcho has been deposed to get to the bottom of the Gibraltar fiasco.
In the "there is no shame" category:
The "settlement" includes a key provision that the Rothstein victims cannot sue Gibraltar bank! The Berger Singerman multi million dollar Gibraltar investments are now safe!
The "settlement" fine print also contains provisions that may ultimately bolster Berger Singerman honchos Gibraltar investments by millions.
It was just announced that the Rothstein estate is suing to block Rothstein's victims from suing Gibraltar bank in Broward county.
Lastly, for anyone who is gullible enough to believe the public announcement of a 65 million dollar potential "recovery" for Rothstein victims ... the check is in the mail.
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