Wife of former high-flying lawyer Rothstein jailed for $1.4billion Ponzi fraud is charged with hiding jewellery worth $1million
The wife of imprisoned Ponzi schemer Scott Rothstein has been charged with attempting to hide more than $1million worth of jewellery from the authorities.
Kim Rothstein, 38, along with her attorney Scott Saidel and friend Stacie Weisman, are all facing money laundering charges for attempting to conceal the jewels and plotting to sell them on.
Her husband Scott Rothstein, once a high-flying attorney in Fort Lauderdale, is serving a 50-year prison sentence for fraud for his role in a $1.4billion Ponzi scheme.
Kim Rothstein, left, the wife of Fort Lauderdale attorney Scott Rothstein who was jailed for fraud, right, has been charged with attempting to hide more than $1million worth of jewellery from authorities
Emotional: Kimberly Rothstein, left, who insists she knew nothing about her husband's criminal dealings, walks out of the federal courthouse in Fort Lauderdale, Florida, after he was sentenced to 50 years in prison
The largest investment fraud in South Florida history involved investments in fake legal settlements where the returns came from the money that had been put in rather than from profit made from the scheme.
Federal authorities seized the couple's palatial homes, fleet of luxury cars, cash, jewellery and watches in November 2009.
Two years later the Rothsteins had to give up much of what was left of the couple's belongings to bankruptcy lawyers attempting to recoup money for her husband's victims.
Prosecutors claim Kim Rothstein assured them they had everything but in fact she and Saidel, 45, and Weisman, 49, 'knowingly took action to conceal certain items of jewellery' and then attempted to sell a portion of them.
They are accused of planning to sell the 12-carat diamond ring to Daoud and have Marin sell off other pieces, according to prosecutors.
Jailed: Scott Rothstein, pictured showing off part of his watch collection in Fort Lauderdale, Florida, put investments into fake legal settlements
Going, going, gone: Scott Rothstein's watch collection was sold at auction last year to recoup money for his victims
Flashy: A stainless steel Chopard encrusted with 33 round full cut diamonds around the edge
Later, prosecutors said, Kim Rothstein
and her coconspirators took steps to persuade Scott Rothstein to testify
falsely about the jewellery's whereabouts.
One key piece was a 12-carat diamond ring that had become central to bankruptcy proceedings in the collapse of the Rothstein Rosenfeldt Adler law firm.
A local jewellery store that had sold the ring to Scott Rothstein was trying to find it, leading to a web of lies and deception that even included a false claim that the ring had been sold to a dead man, prosecutors said.
The other pieces include five rings, including the 12-carat ring, an engagement ring and a wedding band containing 18 emerald cut diamonds.
There are also 10 watches, among them a Rolex Daytona Cosmograph with leopard print design, a women's gold and diamond Piaget and a platinum and diamond Pierre Kunz.
For sale: A frank Muller white gold, diamond and rainbow coloured Roman numeral marker wtach was part of the collection of jewellery sold off that belonged to Ponzi schemer Scott Rothstein
Quite a collection: A Zenith yellow gold watch and a Audemars Piquet titanium watch engraved 'Especially made for Arnold Schwarzenegger'
Historical: Scott Rothstein owned cuff links that once belonged to the 37th U.S. president Richard Nixon
The list also include five sets of earrings, four necklaces, two bracelets and a variety of gold coins, including 26 South African Krugerrands.
Finally, there were a pair of pearl, diamond and sapphire cufflinks, more than $33,000 in cash, several silver pens and 50 1-ounce gold bars.
Miami U.S. Attorney Wifredo Ferrer said: 'When a witness lies under oath or conspires to obstruct justice, the integrity of our system of justice is undermined.'
Lawyers for Kim Rothstein said in a statement she takes 'full responsibility' for her actions but insisted she did not know about her husband's $1.2 billion scam.
The statement continued: 'Kim welcomes the opportunity to put a very challenging time in her life behind her.
'Kim is a vibrant, diverse and deeply caring person who looks forward to being a productive citizen in the years to come.'
She faces up to five years in federal prison for charges of money laundering, obstruction of justice and witness tampering conspiracy.
Lavish: A cushioned mixed cut 6.75 natural ruby ring owned by the Rothsteins was also sold off
Complicated: A white gold Pierre Kunz watch with round black, 3 sub-dials, and moon phase function
Bling: A yellow gold DeBeers pendent set with diamonds and gems
Driving in the fast lane: A 2009 Mercedes-Benz SL 550 Roadster with just 4,834 miles on the clock
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