Rhode Island news
Florida fraud suspect transfers ownership of two Narragansett, R.I. houses
01:00 AM EST on Tuesday, November 10, 2009
A prominent Florida lawyer and political donor now at the center of a multimillion-dollar fraud investigation transferred ownership late in October of two Narragansett houses he owned — valued at $4.5 million — to a limited liability corporation, town records show.
Scott W. Rothstein, 47, of Fort Lauderdale, owned the two houses on Bluff Hill Cove Farm Road, overlooking the eastern shore of Point Judith Pond. Real estate records show he purchased both properties from nightclub owner Michael C. Kent; one in 2006 for $2.8 million and the other in July 2008 for the same price.
But as Rothstein’s high-profile lifestyle began to unravel and federal authorities were scouring records of his investments and offshore bank accounts, Rothstein, on Oct. 20, filed a quit claim deed in Narragansett Town Hall turning over ownership of the property, without any exchange of money, to a limited liability corporation based in Delaware called “NRI 15.”
Rothstein took the same step with several Florida properties he owned, turning them over to Delaware companies, reported The South Florida Sun-Sentinel.
While no criminal charges have been filed, Rothstein’s investors accuse him of misappropriating $100 million or more through investments in legal settlements that his law firm allegedly handled. Late in October, when some of those investors failed to receive their scheduled payments, they started calling authorities.
With reports from The Associated Press and The Miami Herald
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