In a previous post, I examined the incestuous relationship between Paul Singerman and other Berger Singerman insiders and Gibraltar Bank (see also here). Berger Singerman is the lead law firm for the trustee in the Rothstein Rosenfeldt Adler bankruptcy. It has spearheaded the "immunization" of Gibraltar and those associated with Gibraltar, in the Gibraltar Bank scandal — a scandal that parallels the TD Bank scandal. The Gibraltar immunization extends to Berger Singerman itself, its insider co-investors with Rothstein in Gibraltar, and to others who aided in orchestrating the purchase of Gibraltar Bank ... the bank Scott Rothstein said was essential to carrying out his scheme.
Rothstein testified that a major reason for his participation in the purchase of Gibraltar Bank was that inquiries into his Gibraltar accounts would then be stopped. So the "carrot" to Rothstein joining with Berger Singerman insiders in the Gibraltar purchase was a cessation of inquiries into the Ponzi scheme; and the "stick" was continued inquiries at Gibraltar, which could result in the quick collapse of the Ponzi scheme. Not much of a choice.
In my March 9, 2012 post, I stated the following:
"Everyone following the Scott Rothstein bankruptcy case should recognize what is really happening:
Berger Singerman is making many quick "pennies on the dollar"
settlements. Those paltry settlements all have buried clauses that
immunize the targets from victim lawsuits — the real "carrot" to settle.
A large part of those paltry settlements then go to Berger Singerman
for legal fees — and Berger Singerman is thereby able to protect
themselves (and friends) from many embarrassing questions and potential
civil claims, including aiding and abetting and civil RICO claims,
regarding Gibraltar"
A few days ago, Civil RICO claims were permitted by U.S. District Judge Joan Lenard to be added to Emess Capital's complaint against TD Bank, thereby showing the viability of filing such claims against Gibraltar Bank and those connected to the Rothstein scheme — claims I pointed out were apropos in Gibraltar's case.
The still open issue is why haven't Civil RICO claims been used against Gibraltar Bank yet? Is it because Berger Singerman obtained immunization for Gibraltar and those connected to Gibraltar, thereby protecting themselves and their own multimillion dollar investments in Gibraltar? Civil RICO claims against Gibraltar, along with aiding and abetting claims, could enmesh Berger Singerman insiders as co-defendants based on allegations they played a crucial role in carrying out Scott Rothstein Ponzi scheme.
