Rothstein Feeder Fund Manager Settles

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.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of