The Florida law firm co-founded by convicted Ponzi-schemer Scott Rothstein received bankruptcy court approval of its chapter 11 liquidation plan, Bloomberg News reported yesterday. Rothstein, who is serving a 50-year prison sentence, ran his $1.2 billion scheme from Fort Lauderdale, Fla.-based Rothstein Rosenfeldt Adler PA. He sold wealthy investors stakes in what he said were payouts in confidential sexual-harassment and workplace-bias cases. The cases turned out to be fabricated. U.S. Bankruptcy Judge Raymond B. Ray in Fort Lauderdale signed the confirmation order today. The plan includes a settlement with Toronto-Dominion Bank, which Rothstein used to launder the proceeds of his scheme. It bars investors from suing the bank and halts most pending state-court lawsuits against it.
