EFTA01734809

Dbg- 12'111 :bon a K: ill ROTHSTEIN FALLOUT Ruling could affect 29 suits Trustee battles bank over answers from firm's ex-officer by John Parent' watentinairoarei After kid-starting a fight for the de. posit& of sneniser Scot: itathasin. ti court-appointed bankruptcy trustee iv] Lis iiefunct law fine pined the Ilanday us a battle over the Erin's tt Debra YEllegas' proffer to investor attia neys. Attorney John Coaliontot represent- ing the urn's bankruptcy trustee. said he is afraid opening the ;troffer would have impteadons for the 29c:se/back lawsuits filed on behalf of investors by altering settlement talks and the ability to get proffers in those cases. %Mesas has been sentenced to 10 years in prison for helping Rothstein fleece investors by forging documents In a S12 billion settlement financing scheme. He received a 50-year sen- Lena. I ler attorney also offered answers to questions from invatorsrepresented by the Fort Lauderdale law flan Conrad & Scherer in a lawsuit against third par- ties in Broward Orcuit Court The prof- fer doesn't waive the Fifth Amendment right against seffinairnination but is of- ten discoverable by opposing parties. She told her sentencing judge she would assist in the recovery of assets for investors btr. is refusing to cooperate with one of Rothstein's Conner banks. Coral Gables-based Gibraltar Private Bank &True. Gibraltar, which wants the Mllegas proffer, is one of many tartish of the ling:then in state court and a defendant in a clawlack suit flied by bank ropey trustee Herbert Stettin. *The trustee and Conrad & Scherer aro trying to ea heel-lamer &men: sad Gebrettat attorney Joseph Detdarta. punter atTew Dirdoints in Miami they are trying to as Like they how the same eight to do thew proffers as the govern- ment does. but they do not; U.S. Bankruptcy Judge Raymond Ray earlier this month ordered %Sagas to answer foundational questions for Gibraltar. but Conrad Si Scherer filed a motion for an emergency beenr.g to protect what It said was work product in anddparion Gibraltar would renew its motion for the fail proffer. Gibraltar is mulling over whether to renew the motion for the rest of her an- swers after learning this week that she is not under any investigation by other law enforcement At the haring on the emergency mo- tion Ibrisday. Genovese said a ruling In favor of Gtbrahar would set a precedent for third parties to aquest svort product from Stettin. This would jeopardize the defeats bargaining with others involved in the Pont scheme and at the law firm who are targets of federal investigators. "We have great concern: said Genovese,a partner at GenoveseJoblove & Batista in Miura. His objection got Rays &mention, and he allowed Conrad & Scherer to inter- vene in Gibraltar's action. Ray said he wanted briefs from Stettin on the legal issue because more defendants am ex- pected Attorney JIm Silver, a partner at Conrad &Scherer. told Ray that Gibraltar is not interested in %lieges' answers but fanner C00 Dena Wirers was given a leyearpison unwire 'to get at the wort product and thought process &Its adversary? DeMaria told Ray all his client wants to see Ls Meg& answers, not the area Lein% pined by Co. forrail S Sdiertg don't baleen answers by a witness will ever be work product.' he said %Alleges' attorney. Robert Sodomy of hes said he want. to prolat Le dent because she could (toe erintleal charges in state court or other federal courts. But he sad he knows of no other criminal Investigators. An ancillary issue at the hearing was the U.S. attorney's objectior. filed Friday to allowing Rothstein to be questioned by dvil attorneys The U-S. attorneys office said It is preparing cases against more than the six people already charged and doesn't want the investigation jeopar- dized by dsil depositions that could alert would-be defendant& 'It is difficult to media with exac- titude when the proposed inclement will be returned, but such indictment is anticipated within the next six months,' prosecutors wrote Friday in their &ec- tions to a Rot sash deposition. Prosecutors also said in a arm foot- note that they wouldn't grant Stetting request for limited questioning of Rothstem but would help. The government is prepared lomake accommodations to the trustee which will enable hint to receive al of the infer- maton necessary to his carrying out his responsffoilities; the response read& Stein said the dock is ticking on the November deadline to file adversarial lawsuits. He has said he might file place- holder lawsuits that could be expanded later against people who profited from Rothstein's scheme DeMaria said outside court that prosecutors are offering what would constitute 'a secret meeting: which Ray warned against in recommertirg Rothstein be made available John Pace& an tatnashed at (305) 347-663a. EFTA_R1_0001 3300 EFTA01734809