Another Rothstein Settlement Scam Figure Pleads Guilty

Another figure in the $1.2 billion Ponzi scheme operated by disbarred lawyer Scott Rothstein is scheduled to plead guilty in Fort Lauderdale federal court.

Court records show that Frank Preve will plead guilty Tuesday to wire fraud conspiracy, which carries a five-year maximum prison sentence. Preve ran the Banyon Group, which invested in Rothstein’s supposedly confidential but ultimately bogus legal settlements.

Court documents say Preve was aware a few months before the scheme collapsed in 2009 that Rothstein was not keeping his commitments to the Banyon investors and that Preve failed to inform them.

Preve’s attorney Ray Rasco previously said Preve reached a plea deal with prosecutors to what the lawyer says are mainly technical investor violations.

Nearly two dozen people have been convicted in the Rothstein case.