Scott Rothstein Redux Part 2: - More On The Gibraltar Bank "Settlement"

Either nobody read the Rothstein/Gibraltar Bank settlement ... or really cares that the Rothstein victims are being so freely victimized again.

Look closely at the reported Gibraltar - Rothstein "settlement" terms:

1.  Gibraltar Bank will pay ten million dollars to the trustee. A large part of that amount will go into the pocket of Berger Singerman — controlled by Gibraltar stockholders Paul Singerman and other still unidentified Berger Singerman honchos (co-shareholders with Scott Rothstein in Gibraltar) —  to pay for legal fees to Berger Singerman. That ten million is the maximum cap Gibraltar will be responsible for because the "settlement" bars victims from suing Gibraltar and part of the recovery from the insurers will be kicked back to Gibraltar! Berger Singerman double dipping not only protects their honchos' multimillion dollar holdings in Gibraltar, but they will collect more millions in legal fees from the "recovery."

2. Ten million dollars will be paid by Gibraltar's insurers — not Gibraltar, of course.

3. And here's the Berger Singerman triple dip: The Gibraltar bank's $50m claims against its liability insurers will be litigated by Berger Singerman because those claims are being assigned to the bankruptcy estate!

How sweet it is ... to be a bankruptcy insider like Paul Singerman!

There really is no shame here. The Rothstein victims are being victimized a second time through the stroke of a bankruptcy insider's pen ... by no less than Scott Rothstein's Gibraltar co-shareholders!

For the paltry sum of 10 million dollars — an amount that is a maximum cap and which will most likely be substantially reduced by recovery from insurers because of the recovery kick back to Gibraltar bank — hundreds of millions in Gibraltar (and Berger Singerman honcho shareholder) liability to Rothstein victims is evaded by the "settlement."

Toronto-Dominion Bank was not lucky enough to have bankruptcy connected insiders, such as Berger Singerman honchos, as shareholders. TD Bank was recently hit with a $67m judgment and more claims are moving through the pipeline.