A Longer Leash To Charge Rothstein Co-Conspirators

November 12, 2014 – In The News
Daily Business Review

Joseph DeMaria was quoted in the Daily Business Review article, “A Longer Leash To Charge Rothstein Co-Conspirators.” Full text can be found in the November 12, 2014, issue, but a synopsis is below.

Until recently the statute of limitations for federal prosecutors to charge co-conspirators involved in the one-time power broker's $1.2 billion Ponzi scheme was five years, until lawyer-turned-criminal, Scott Rothstein fell on his sword. The U.S. attorney's office then decided the case could carry a 10-year statute of limitations since it involved bank fraud, an exception spelled out in federal law.

“While any good defense attorney would challenge an indictment that is filed now, the government has very solid law to support using the longer statute of limitations in this case," said Fox Partner, Joseph DeMaria.

More than two dozen others, including eight attorneys, were charged since the Ponzi scheme imploded five years ago.

DeMaria agreed that it will depend who is charged from now on whether the government can invoke the 10-year statute of limitations that only applies to the charges of bank fraud in the Rothstein Ponzi scheme.

"It does not apply to claims like obstruction of justice, perjury, election violations and money laundering, which have been most of the cases that the government has brought the past five years," explained DeMaria.

"In recent cases out of New York where a bank officer was a conspirator in the fraud and the bank suffered losses such as settlements of claims and fines by the SEC, the courts have held that that is the type of loss that extends the limitations period to 10 years," DeMaria noted.