A onetime funder of Scott Rothstein's $1.2 billion Ponzi scheme has reached a settlement with the bankruptcy trustee of Rothstein's former law firm that will bring in roughly $400,000 to help repay creditors, Dow Jones Daily Bankruptcy Review reported today. The funder, Frank Preve, agreed to pay $65,000 in cash, give up the deed to a $350,000 house he owns in Cape Coral, Fla., and hand over a St. Thomas timeshare worth $56,000, according to a filing made on Tuesday in U.S. Bankruptcy Court in Fort Lauderdale. The overall settlement value of $471,000 falls short of the $5.06 million that chapter 11 trustee winding down the Rothstein Rosenfeldt Adler law firm initially sought when he sued Preve three years ago.
