Thursday, 21 August 2014
Last updated 1 hour ago
Jul 26 2010 | 12:06pm ET
A hedge fund manager at the center of the Scott Rothstein Ponzi scheme case has agreed to surrender most of his assets to settle a lawsuit filed by the receiver of Rothstein’s law firm.
George Levin will turn over 29 properties and business interests to John Genovese under the proposed settlement. The receiver will then liquidate those assets, keeping the first $5 million of the proceeds and 85% of the rest to compensate Rothstein’s victims.
Levin, whose Banyon Investors Fund funneled about $830 million to Rothstein’s scheme, will get to keep the remaining 15%, which could be worth up to $30 million, according to high estimates of his net worth. Levin and his wife will also get to keep their Fort Lauderdale, Fla., home and $750,000 worth of jewelry and personal effects.
The settlement still requires the approval of a federal bankruptcy judge.
Most of the assets being turned over are in real-estate; Genovese told Law.com, “We have no idea what they are worth at this time.” He said Levin chose to settle the case rather than “die the death of a thousand cuts.”
Rothstein, once a prominent Florida lawyer, pleaded guilty to fraud charges in January and last month was sentenced to 50 years in prison.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note