A Civil Contempt Blog: Scott Rothstein - TD Bank Wins One

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A Civil Contempt Blog

This blog will describe the unknown and unpublicized true story and bizarre circumstances surrounding the longest, still ongoing, civil contempt sanction in U.S. Federal Court history now lasting over 11 years, including an imprisonment of over 6 years.

SEARCH THIS BLOG FRIDAY, MARCH 9, 2012

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Scott Rothstein - TD Bank Wins One

TD Bank just won a victory before Judge Marra in federal district court. Judge Marra ruled TD Bank has the right to have a jury trial conducted in the district court, not the bankruptcy court, because it did not consent to a bankruptcy court jury trial. The only question is if they want to go before a jury ... and I don't only mean TD Bank. The elephant in the room throughout the whole Scott Rothstein bankruptcy is that Berger Singerman insiders, including Paul Singerman, partnered with Rothstein to buy Gibraltar Bank, arguably a bank more important to Rothstein's schemes then TD Bank. Clearly, Berger Singerman insiders are presumed to have inside knowledge of Rothstein's scheme through due dilligence and similar efforts used in evaluating their Gibraltar investment and their partner, Rothstein, who they were investing with. At the time of the purchase all the warning signs were in place, including the many internal complaints about Rothstein's accounts. Rothstein has already testified that the key reason for his investing in Gibraltar Bank was to block all internal investigations of his accounts. The conflict problem so the public was informed and it was dutifully reported was "solved" by hiring another law firm to sue Gibraltar. The problem then disappeared from public view, as "solved." But, the conflict problem was never solved because Gibraltar played a central role in the Ponzi scheme. Berger Singerman had retained such a degree of control over the bankruptcy estate that Paul Singerman negotiated the sweetheart Gibraltar bankruptcy settlement that immunizes Gibraltar from other claims by Rothstein's victims and protects Berger Singerman insiders' investment in Gibraltar. The ploy of hiring another firm to give the appearance of a "solved" conflict, worked very well indeed. TD Bank's "Best Defense" - What Happened To The In Pari Delicto Defense ... It Worked In The Madoff Case? It is so far very strange that the issue of "in pari delicto" has not yet hit any headlines in this case (See my previous post on this subject). Remember, that well settled defense theory says, in essence, that if two parties work together on a scheme, then one of those schemers (in this case the bankruptcy estate) cannot sue third parties on behalf of innocent victims. To make the in pari delicto concept clearer: picture two muggers assaulting a victim. One of the muggers sues another alleged accomplice to the mugging to compensate the victim. The sued alleged accomplice raises the in pari delicto defense claiming an accomplice cannot sue him to compensate the victim. This very important defense issue, a few days ago, became the subject of an appeal in the Second Circuit in the Bernie Madoff bankruptcy case. The appeal came after two Madoff

ABOUT ME

Stephan J. Lawrence I am an M.I.T. graduate and was originally a financial analyst for several major brokerages and private investment firms. I established a very successful trading company that collapsed in the October 1987 crash after Bear Stearns successfully embezzled 10's of millions of dollars from my companies using backdated fictitious trades that the Chicago Board Options Exchange and the Options Clearing Corp. eventually admitted never occurred. View my complete profile

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2012 (6) March (2) Scott Rothstein - TD Bank Wins One Raj Rajaratnam Convicted ... But Local Bankruptcy ... February (4) 2011 (6)

http://acivilcontemptblog.blogspot.com/2012/03/scott-rothstein-td-bank-wins-one.html[3/12/2012 4:23:43 PM]

A Civil Contempt Blog: Scott Rothstein - TD Bank Wins One

bankruptcy trustee lawsuits against financial institutions were thrown out based on the in pari delicto defense. Those cases parallel the Scott Rothstein case against TD Bank. Everyone following the Scott Rothstein bankruptcy case should recognize what is really happening: Berger Singerman is making many quick "pennies on the dollar" settlements. Those paltry settlements all have buried clauses that immunize the targets from victim lawsuits the real "carrot" to settle. A large part of those paltry settlements then go to Berger Singerman for legal fees and Berger Singerman is thereby able to protect themselves (and friends) from many embarrassing questions and potential civil claims, including aiding and abetting and civil RICO claims, regarding Gibraltar.

Posted by Stephan J. Lawrence at 9:49 PM Labels: bankruptcy, Berger Singerman, Gibraltar Bank, Gibraltar Private Bank, Judge Herbert Stettin, Paul Singerman, Scott Rothstein, Settlement, TD Bank

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http://acivilcontemptblog.blogspot.com/2012/03/scott-rothstein-td-bank-wins-one.html[3/12/2012 4:23:43 PM]

A Civil Contempt Blog: Scott Rothstein - TD Bank Wins One

http://acivilcontemptblog.blogspot.com/2012/03/scott-rothstein-td-bank-wins-one.html[3/12/2012 4:23:43 PM]