Florida GOP sued for donations from Scott Rothstein's law firm

The Republican Party of Florida was sued Wednesday for $237,000 it received from Scott Rothstein's defunct Fort Lauderdale law firm.

Rothstein donated to the party from accounts of his law firm, Rothstein Rosenfeldt Adler, on more than 10 occasions, states the lawsuit filed in federal bankruptcy court.

The political donations were not a legitimate law firm expense and the firm received nothing in return for them, according to the suit.

The lawsuit was filed by Berger Singerman, the law firm working on behalf of the trustee in the bankruptcy case for Rothstein Rosenfeldt Adler. The trustee sent a demand letter to the party in April, but ``the defendant has failed and refused to make such repayment,'' the lawsuit states.

But RPOF spokeswoman Katie Betta said the party has already paid back donations.

``In November, the RPOF voluntarily returned $90,000 from Rothstein, Rosenfeldt and Adler, $40,000 from Scott Rothstein and $5,000 from WAWW [a Scott Rothstein company] from our state account and an additional $10,000 from Scott Rothstein from our federal account to the U.S. Marshal Service to ensure that the victims of these crime are properly compensated,'' Betta wrote in an e-mail to The Miami Herald. ``The law firm is currently attempting a double recovery of these funds.''

The payments were fraudulent transfers made between 2006 and 2009, according to the lawsuit.

SPENDING SCANDAL

The lawsuit is one more hit for the embattled Republican Party of Florida, whose chairman, Jim Greer, quit amid a credit card spending scandal earlier this year. If convicted, Greer faces up to 75 years in prison for theft, fraud and money-laundering charges stemming from accusations that he created a company called Victory Strategies to funnel party donations to himself. Greer has pleaded not guilty.

Rothstein and his firm gave generously to politicians and candidates on both sides of the aisle as a way for him to boost the legitimacy and image of himself and his law firm. Rothstein regularly hosted lavish political fundraisers. Photos showing him with politicians -- including one in which he embraced Gov. Charlie Crist -- were auctioned off by the bankruptcy estate earlier this year.

In April, Berger Singerman sent demand letters to dozens of political groups, politicians and candidates seeking repayment of about $650,000. The Republican Part of Florida is the first to be sued, but may not be the last.

CLOSED ACCOUNTS

``There are clearly some campaign contributions that are stale in the sense that accounts were lawfully closed, which makes it problematic to sue those people,'' said Berger Singerman lawyer Chuck Lichtman. ``Some accounts are too small and don't merit it from a dollar and cents standpoint. There are some PACS that no longer exist. There are some potential defendants that we are still seriously looking at and might well sue shortly.''

Rothstein's law firm was brought down Halloween weekend as news began to surface about Rothstein's $1.2 billion Ponzi scheme, which was based on fabricated legal settlements.

In June, Rothstein was sentenced to 50 years in prison for racketeering and other charges. The only other employee at the law firm who has thus far faced criminal charges is former Chief Operating Officer Debra Villegas, who pleaded guilty to money laundering in June. She faces up to 10 years in prison when sentenced in August.

Both have cooperated with authorities to provide information on others at the law firm, and it is likely that other former firm employees could face charges later this year.

Miami Herald staff writer Jay Weaver contributed to this report.

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