Hollywood Ex Sues Over Rothstein Allegations

Nov 16 2011 | 9:47am ET

A former Hollywood agent has sued two New York hedge fund for $200 million, accusing it of unfairly tying him to the Scott Rothstein Ponzi scheme.

A.J. Discala, perhaps best known as the ex-husband of actress Jamie-Lynn Sigler and now CEO of New York-based merchant bank The Broadsmoore Group, filed a defamation claim against Platinum Partners and Centurion Credit, seeking $100 million in damages and another $100 million in punitive damages. Discala alleges that Platinum's Mark Nordlicht sought to spread the allegation that Discala "engaged in improper or criminal conduct in relations to Rothstein's Ponzi scheme," including an e-mail to Hedge Fund Alert saying that "the bigger story was A.J. Discala's involvement."

The resulting HFA article identified Discala's Clockwork Capital as having invested at least $30 million in Rothstein's scam, and noted that "the firm appears to have been set up for the sole purpose of lending to Banyon [Funding Rothstein feeder fund] and making direct investments in Rothstein's operation.

But, Discala notes, unlike Platinum and Centurion, he hasn't been sued.

"A.J. Discala has never been named as a party in any litigation whatsoever related to Rothstein's massive fraud nor has it ever been alleged that he had done anything wrong," his lawyers wrote to the South Florida Business Journal. "This lawsuit demonstrates that we fully intend to take similar actions against any individuals, organizations or media outlets that have made false, defamatory statements about Mr. Discala."

For its part, Platinum told the SFBJ that Discala's lawsuit, filed in West Palm Beach, Fla., federal court, was "frivolous."

Rothstein himself is serving 50 years in prison for running the $1.2 billion fraud.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

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

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note