UPDATE 7/15 4:40pm
FORT LAUDERDALE, Fla. (AP) _ Federal prosecutors have reached an agreement with a bankruptcy trustee on how to divide nearly $50 million forfeiture proceeds from convicted Ponzi schemer Scott Rothstein.
Miami U.S. Attorney Wifredo Ferrer says about $28 million will go to qualified victims of the scam and $21 million to claimants in the bankruptcy of Rothstein's now-defunct Fort Lauderdale law firm.
The money comes from forfeiture of real estate, boats, vehicles, jewelry and bank accounts traced to Rothstein's $1.2 billion scheme. The settlement still must be approved next month by two federal judges.
Rothstein is among roughly two dozen people convicted in the scam, which offered investments in supposedly confidential legal settlements that did not exist. Rothstein himself is serving a 50-year prison sentence.
Another Scott Rothstein crony goes down.
Frank Preve is being charged with wire fraud conspiracy in connection to the $1.2 Billion scheme.
Preve ran the Banyon Group, which invested in Rothstein's confidential legal settlements that turned out to be bogus.
He faces up to five-years in prison.
(Photo: CBS 4)