DS9 Document EFTA01079863

a ce. 4A44 ROTHSTEIN FALLOUT Ruling could affect 29 suits Am Trustee battles bank over answers from firm's ex-officer b John nacenti After kick-starting a fight for the de. position of scarrister Sam Rothstein. the lets court-appointed bankruptcy trustee for his defunct law finn pined the skirmish liresday in a battle over the firm's COO Debra Villegas' proffer to iliVeSt)r attor- neys. Attorney John (*nose s°, represent- ing the Erin's bankruptcy trustee, said he is afraid opening the proffer would have implications fur the 29 elawback lawsuits filed on behalf of investors by altering sentiment talks and the ability to get proffers in those rases. Vullegas has been sentenced to 10 years m prison for heaping Rothstein fleece investors by forging documents in a Si .2 billion settlement financing scheme. He received a SO-year sen- tence. Ile: attorney also offered answers to questions from imintorsrcpresented by the Fort Lauddale law Rim Conrad & Scherer in a lawsuit against thini par- ties in Broward Circuit Court The prof- fer doesn't wave the Fifth Amendment *96 ngim against self-incrirnination but is of. Anal ten disowerabk by opposing parties. She told her sentencing judge she would assist in the recovely of assets for investors but is refusing to cooperate with one of Rothstein's fonrer banks. Coral Cabin-based Gibraltar Pnvate Bank &Int.< Gibraltar, which wants the tillegas proffer. is one of many targets of the litigation in state court and a defendant In a dawback suit filed by bankruptcy tr ance Herbert Stettin 'The tusute and Conrad & Scherer are trying to act hke tuner Grote; stud Gibraltar attorney Joseph DeMaria. a partneratiewCardenas in Miami-They are trying tin act like they have the same right to do these proffers as the govern- ment does. but they do not U.S. Bankruptcy Judge Raymond Ray earlier this month ordered Vilegas la answer foundational questions for Gibraltar. but Conrad & Scherer filed a motion for an emergency hearing to pectic. µhat it said was work product in antitpation Gibraltar would renew its motion for the full 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 hearing on the emergency mo- tion Tuesday. Genovese said a ruling in favor of Gibraltar would set a precedent for third patties to request work product from Stettin. MIS would jeopardize the delicate bargaining with others involved Li the Pont scheme and at the law firm who are targets of federal investigators 'We have great concern.' said Genmese.a partner at Genovese Jo hove & Batista in Miami. His objection got Rays attention. and he allowed Conrad & Scherer to triter vene tn Gibraltar's action. Ray said he wanted briefs from Stettin on the legal issue because more defendants are ex- pected Attorney Jun Silver. a partner at Conrad &Scherer. told Ray that Gibraltar is not interested in Alleges' answers but o oil warn I Former COO Debra Magna.% given a 10-year priSedl sentence -to get at the work product and thought proses of its adwirsary.' DeMaria told Ray all his client wants to see is /ilegal MIMS. not the ques. tans posed by Conrad & Scherer 1 don't believe answers by a witness will ever be work product: he said • Villegas attorney. Robert Stickney of Miami. has said ho wants to protect beet client because she could face criminal charges in state court or other federal courts. But he said he knows of no other criminal inwsnigations. An ancillary issue at the hearing was the U.S attorney's objection filed Friday to allowing Rothstein to be questioned by civil atter leis. The US. attorney's office said it is preparing cases against more than the six people already charged and doesn't want the investigation jeopar dized by evil depositions that could alert would-be defendants. 'It is difficult to predict with exac- titude when the proposed indidment win be returned. but such indictment Is anticipated within the next SO, months; prosecutors wrote Friday in their eke( tions to a Rothstein deposition. Prosecutors also said to a vague foot- note that they wouldn't grant Stettin's request for limited questioning of Rothstein but would help. 'Thegmemment isprepuedtornake accommodations to the trustee which wile enable him to mantell of the ithr- mabon necessary to his carrying out his responsibiiities.' the response reads Stettin said the dock is tacking on the. November deadline to file adversarial 'awaits 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 coup that prosecutors arc offering what would constimte *a secret meiging; which Ray warned against in recommending Rothstein be made available. Sohn hand can be reached at (305) 347408. EFTA01079863