It seems almost everyone wants to talk to Scott Rothstein about his Ponzi scheme these days. However, Gibraltar Private Bank & Trust is seeking to narrow the scope of any depositions of Rothstein.

It seems almost everyone wants to talk to Scott Rothstein about his Ponzi scheme these days.
However, Gibraltar Private Bank & Trust is seeking to narrow the scope of any depositions of Rothstein.
Gibraltar is the Coral Gables-based bank where Rothstein laundered dirty money. The bank recently filed a motion in bankruptcy court that opposes a request from investors in Rothstein’s Ponzi scheme to question him.
Gibraltar says it wants to see Rothstein deposed, but is objecting to the manner and timing of the recent request. The bank is the only party that has expressed a problem with the request.
Gibraltar is facing two lawsuits over Rothstein’s $1.2 billion scheme: one from the so-called Razorback investors in state court and one from the trustee for Rothstein’s former law firm in bankruptcy court. Gibraltar is fighting both suits and has stated emphatically that it had no actual knowledge of Rothstein’s fraud.
But there’s a problem: No one knows where Rothstein is, as he serves out his 50-year prison sentence. The Federal Bureau of Prisons hasn’t revealed his location and hasn’t provided any reason for the lack of information.
So, it would seem a federal judge’s order is necessary to produce Rothstein. And that’s exactly what the trustee and investors are asking U.S. Bankruptcy Judge Raymond Ray for.
In the interests of full disclosure, I also would like to question Scott Rothstein. He hasn’t granted many interviews, so I’d like to attend any depositions that occur, and I’ve asked Ray for permission to do that.
A bunch of other people have also filed motions in favor of the deposition, including Stuart Rosenfeldt, Rothstein’s former law partner.
In a tiny footnote in its motion, Gibraltar said the questions should be asked under Rules 7026 and 7030 of the bankruptcy code, not under Rule 2004. I’m not a lawyer, but the code says that certain rules should apply if there’s a contested lawsuit in a case, and there is in this case.
Gibraltar wants any deposition of Rothstein to be conducted under Federal Rules of Civil Procedure, not under the broader guideline that exists under Rule 2004 of the U.S. Bankruptcy Code.
Due to the broad powers of a bankruptcy court to gather evidence of a failed business, the Rule 2004 process is described as “unfettered and broad,” so bankruptcy attorneys would have greater latitude to question Rothstein if Ray grants the requests under that rule.

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