More than four years after Scott Rothstein’s $1 billion-plus Ponzi scheme came to light, a bitter turf war between representatives of his fraud victims and his creditors has finally been resolved, The Wall Street Journal reported yesterday. A recently reached settlement among federal prosecutors and bankruptcy officials should bring an end to a long-running fight over how to divvy up the fruits of Rothstein’s fraud among fraud victims and creditors of his now-defunct law firm. Ever since Rothstein’s arrest and the bankruptcy filing of his Florida law firm in late 2009, prosecutors and bankruptcy lawyers have bickered over whether his luxury cars, jewelry, cash, real estate and other assets were his personal property or property of the law firm. The settlement is subject to the approval of a bankruptcy and district judge.
