The Real Deal Miami

Kimberly Rothstein living rent-free in Ponzi schemer’s former mansion

February 22, 2010 10:50AM

Kimberly Rothstein, the wife of convicted Ponzi schemer Scott Rothstein, is living rent-free in one of her husband’s former mansions, and renting out his other multi-milliion dollar properties to tenants, bankruptcy lawyers said Friday. In an interview with the attorneys last week, which has not yet been made public, Rothstein said the government had risked letting the properties lose value by not paying some utility bills and leaving them unsecured. Her husband pleaded guilty to scamming creditors out of $1.2 billion and faces life in prison at his May 6 sentencing. Some 22 properties owned by Rothstein, including the waterfront Fort Lauderdale home where he resided, were turned over to the federal government in December. “The government has apparently delegated its duty to property manage and safeguard certain of the property subject to forefeiture,” Paul Singerman, one of the attorneys on the bankruptcy case, wrote in court filings.