Monday, November 23, 2009

How Not To Run A Law Firm.


There was an amended complaint filed a short while ago in the Rothstein forfeiture proceedings, you can see the Sun-Sentinel article here.

The docket is here and the amended complaint is here.

It's a pretty amazing list of crap if you take the time to absorb it all. Aside from the cars, houses, boats etc., there's also a 10 to 20 grand "guitar collection,"16 DuPont lighters, tens of thousands of AMEX gift cards, and a partridge in a pear tree.

Paragraph 14 is instructive:
In one year, prosecutors wrote, the Rothstein Rosenfeldt Adler law firm brought in just $8 million but salaries for the workforce were $18 million. "The additional $10 million for salaries, as well as the other expenses for operation of the law firm, came from the operation of, and the funds generated , by the 'Ponzi' scheme," according to documents filed by Assistant U.S. Attorney Alison Lehr and Taryn Guariglia, an IRS special agent.
So folks at the firm were paid from allegedly stolen funds?

Also, how is it possible a seventy-lawyer firm could only bring in $8 million in revenues? What kind of business model is that?

30 comments:

  1. Claw it all back.

    ReplyDelete
  2. $8 Million Dollars? That's it? hell, this guy originates that much himself in a bad year:

    http://www.youtube.com/watch?v=imkG9IhbW4g

    ReplyDelete
  3. @1:58,

    It cost that much to build him.

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  4. Rumpole post MONEY IS THE ROOT OF ALL EVIL bored the hell outta of me.
    This post ain't that better.

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  5. 1:58 is so true...

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  6. Ervin 2.0 for prez

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  7. How can I get my mitts on some of those AMEX gift cards? I'd like to show Kimmy a nice night on the town.

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  8. Can you link to the PDF for people who don't have pacer access?

    ReplyDelete
  9. 70 lawyers at $8 million in gross revenue adds up to $114, 285.71 per year per lawyer or 571 billable hours per year per lawyer at $200 an hour or 10.98 hours a week per lawyer. And the lawyers did not know something was amiss? Unbelievable!

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