President Trump on witness list in Palm Beach lawsuit involving billionaire pedophile

By Dan Christensen, FloridaBulldog.org 

President Trump and Jeffrey Epstein

President Donald Trump is on a list of witnesses for trial in a Palm Beach lawsuit that pits billionaire pedophile Jeffrey Epstein against a Fort Lauderdale attorney who represents Epstein’s victims.

The case appears bound for trial this summer following a Feb. 9 ruling by the Florida Supreme Court in another case that has allowed Fort Lauderdale lawyer Bradley Edwards’ claim of malicious prosecution against Epstein to proceed.

President Trump “has been identified as an individual who may have information relating to these allegations,” said Edwards’ West Palm Beach attorney Jack Scarola, who placed Trump’s name on a witness list on Aug. 31. “But it’s unlikely that he would ever be called” to appear at trial, especially now that he’s assumed the presidency.

Scarola said Trump is one of a number of high-profile individuals whose testimony might be relevant because they “had a relationship with Epstein that would have at least exposed them potentially to what was going on inside Epstein’s Palm Beach home … during the relevant period of time” between 2001-2007.

What was going on in Epstein’s mansion, court papers say, was an ugly child molestation scheme involving sex with “substantially more” than 40 girls, some as young as 12. A “statement of undisputed facts” filed by Scarola says Epstein used his staff and his victims to recruit more victims, employing “a pyramid abuse scheme in which he paid underage victims $200-$300 cash for each other underage victim that she brought to him.”

“There is no evidence the President was involved in Epstein’s schemes,” Scarola said.

Secretary of Labor nominee Alex Acosta

Still, the spectacle of a U.S. president being drawn into sordid litigation involving a notorious politically connected sexual criminal who got an apparent sweetheart deal from then-Miami U.S. Attorney Alex Acosta, now Trump’s nominee to become U.S. Secretary of Labor, represents a potential political nightmare for the White House.

The White House press office did not respond to requests for comment.

Epstein’s attorney, Tonja Haddad Coleman, declined to comment.

An affidavit about Trump

A little-noticed affidavit by Edwards recounting his knowledge of Trump’s involvement with Epstein is recounted further below in this story.

Investment banker Epstein, represented by a team of high-powered lawyers, pleaded guilty June 30, 2008 in Palm Beach Circuit Court to two felonies: procuring a person under 18 for prostitution and offering to commit prostitution. He served 13 months of an 18-month sentence. The Palm Beach Daily News has reported Epstein served his time in “a vacant wing at the Palm Beach County Stockade with liberal work-release privileges.”

Today, Epstein, 64, is a registered sex offender.

In exchange for his plea, U.S. Attorney Acosta agreed not prosecute Epstein or his employees on federal charges contained in a 53-page indictment. A 2007 federal non-prosecution agreement with Epstein states, among other things, that he “knowingly and willfully” conspired with others to use interstate commerce to “persuade, induce, or entice minor females to engage in prostitution.”

If convicted of that charge, and others cited in the agreement, Epstein faced possible prison for life.

Republican Acosta, dean of Florida International University’s Law School and chairman of U.S. Century Bank, is expected to be asked about his treatment of Epstein at his Senate confirmation hearing on Wednesday.

In addition to the malicious prosecution claim against Epstein, attorney Edwards is also suing the government on behalf of “Jane Doe 1 and Jane Doe 2” and others under the federal Crime Victims’ Rights Act (CVRA). The lawsuit, filed in 2008, alleges the U.S. Attorney’s Office under Acosta violated the rights of Epstein’s victims by, among other things, “conspiring” with Epstein to keep them “in the dark’’ so the plea arrangement could be done without the victims “raising any objection.”

Wifredo Ferrer, who stepped down as Miami U.S. Attorney earlier this month

In February 2016, Edwards and co-counsel Paul Cassell filed a still-pending motion for summary judgment that says Acosta’s successor, Wifredo Ferrer, “has continued to fight” victims’ efforts “to have the court declare that their rights were violated.” The motion asks U.S. District Judge Kenneth Marra to rule that the government violated the victims’ rights and explore possible remedies. Ferrer stepped down March 3.

Addressing a “terrible injustice”

“Both Brad and Professor Cassell undertook and have continued to prosecute the CVRA claim to address what they perceive to be a terrible injustice,” said Scarola. “There is no claim for money damages and there is no prevailing party provision in the CVRA” that would allow them to collect legal fees for their work on the case.

Attorney Edwards began representing several of Epstein’s victims while maintaining a solo law practice in 2008, settling a number of claims for undisclosed amounts two years later.

For eight months in 2009, however, he worked for Rothstein, Rosenfeldt and Adler, the law firm that spectacularly imploded in scandal in November of that year when it was discovered that founder Scott Rothstein was running a giant Ponzi scheme. Rothstein, now in prison, enticed investors by falsely claiming that they could buy into lucrative pending settlements in whistleblower, sexual harassment and other cases.

Edwards’ court papers say he knew nothing of Rothstein’s schemes, and federal authorities later determined Edwards to have been one of Rothstein’s victims. In 2009, however, Epstein sued Rothstein, Edwards and one of Edwards’ clients alleging, among other things, civil racketeering. Edwards’ court response: the suit was filed “for the sole purpose of attempting to intimidate” him and his client.

Epstein later dropped all his allegations, and Edwards since has turned the case back against him with his counterclaim of malicious prosecution. The case was on hold for two years pending last month’s Florida Supreme Court ruling, which reversed a lower court decision that dismissed the accusation on technical grounds.

Edwards won’t discuss either case. But in a little-noticed 2010 affidavit, given a year after the case was filed, Edwards explained why he thought Trump and other notables involved with Epstein, including former President Bill Clinton, might have relevant information to provide.

“If you’ve read Brad’s affidavit then you know everything there is to know regarding Trump,” Scarola said.

Does Trump have knowledge of Epstein’s crimes?

In his affidavit, Edwards suggests Trump has personal knowledge of Epstein’s criminality.

“I learned through a source that Trump banned Epstein from his Maralago [Mar-A- Lago] Club in West Palm Beach because Epstein sexually assaulted an underage girl at the club,” Edwards stated.

The affidavit notes that Trump visited Epstein at Epstein’s West Palm Beach home – “the same home where Epstein abused minor girls daily.”

Fort Lauderdale attorney Bradley Edwards

A “review of message pads confiscated from Epstein’s home” showed “that Trump called Epstein’s West Palm Beach mansion on several occasions during the time period relevant to my client’s complaints,” the affidavit says. Likewise “Epstein’s phone directory from his computer contains 14 phone numbers for Donald Trump, including emergency numbers, car numbers, and numbers to Trump’s security guard and houseman.”

The affidavit goes on to say that one of Epstein’s victims “Jane Doe #102” has alleged that she was initially approached at Trump’s Mar-A-Lago by Ghislaine Maxwell and recruited to be Maxwell and Epstein’s “underage sex slave.”

Maxwell, daughter of the late British publishing baron Robert Maxwell, is named in the affidavit as an Epstein associate of interest. She is described in court papers as Epstein’s “longtime companion” who helped run his companies and “recruit underage children” for the pleasure of both Epstein and herself. The affidavit says she attended the wedding of Chelsea Clinton, Bill and Hillary Clinton’s daughter, in July 2010.

The affidavit goes on to cite the 2009 deposition of Epstein’s brother, Mark Epstein, who “testified that Trump flew on Jeffrey Epstein’s plane with him (the same plane that Jane Doe 102 alleged was used to have sex with underage girls).”

Likewise, attorney Edwards cited in his affidavit a 2002 New York Magazine article about Epstein titled, “Jeffrey Epstein: International Moneyman of Mystery.”

“I’ve known Jeff for fifteen years. Terrific guy,” said Trump, then a prominent, wealthy New York developer. “He’s a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side. No doubt about it – Jeffrey enjoys his social life.”

The subtitle of the article about Epstein: “He’s pals with a passel of Nobel Prize-winning scientists, CEOs like Leslie Wexner of the Limited, socialite Ghislaine Maxwell, even Donald Trump. But it wasn’t until he flew Bill Clinton, Kevin Spacey, and Chris Tucker to Africa on his private Boeing 727 that the world began to wonder who he is.”

A second U.S. president

While ex-President Clinton is not on the witness list for trial, Edwards listed a number of reasons in his affidavit to believe that Clinton might have relevant information about Epstein. They include:

·      Clinton’s “well known” friendship with Ghislaine Maxwell, an alleged enabler of Epstein’s sexual crimes with young girls.

·      Clinton’s highly publicized travel with Epstein and Maxwell aboard Epstein’s private plane to Africa. Flight logs for “the relevant years 2002-2005 showed Clinton traveling on Epstein’s plane on more than 10 occasions and his assistant, Doug Band, traveled on many more occasions.” The logs also showed Clinton traveled with other “employees and/or co-conspirators of Epstein’s that were closely connected to Epstein’s child exploitation and sexual abuse.”

·      “Jane Doe No. 102 stated generally that she was required by Epstein to be exploited not only by Epstein but also Epstein’s ‘adult male peers, including royalty, politicians, academicians, businessmen and/or other professional and personal acquaintances’ – categories Clinton and acquaintances of Clinton fall into.”

Ex-President Bill Clinton

·      “Clinton frequently flew with Epstein aboard his plane, then suddenly stopped – raising the suspicion that the friendship abruptly ended, perhaps because of events related to Epstein’s sexual abuse of children.”

·      Epstein’s computer contact list “contains e-mail addresses for Clinton along with 21 phone numbers for him.”

Attorney Scarola would not say why Clinton is not on the Aug. 31 witness list, stating he is “not at liberty to discuss our litigation strategy.”

Edwards initially sought to depose Trump and Clinton about Epstein, but never did. Scarola said there was no need to depose them after Epstein dropped his racketeering and other claims against Edwards.

While there are other notables on the witness list of those with knowledge of Epstein, including retired Harvard University law professor Alan Dershowitz and illusionist David Copperfield, there’s only one other politician. That’s ex-New Mexico Governor and Clinton Administration Secretary of Energy Bill Richardson.

The affidavit says Epstein’s personal pilot, Larry Morrison, testified in a 2009 deposition about “Richardson joining Epstein at Epstein’s New Mexico ranch” and that “there was information that Epstein had young girls at his ranch which, given the circumstances of the case, raised the reasonable inference he was sexually abusing these girls since he had regularly and frequently abused girls in West Palm Beach and elsewhere.

“Richardson had also returned campaign donations that were given to him by Epstein, indicating that he believed that there was something about Epstein that he did not want to be associated with,” the affidavit says.

The governor and the felon: the profitable, private partnership of Rick Scott and Ken Jenne

By Dan Christensen, BrowardBulldog.org 

Before he was governor, Rick Scott, left, funneled stock options worth $375,000 to then Broward Sheriff Ken Jenne

Before he was governor, Rick Scott, left, funneled stock options worth $375,000 to then Broward Sheriff Ken Jenne

Kimberly Kisslan’s sudden resignation from Broward Health’s governing board two weeks ago followed news of her immunized testimony in the 2007 corruption case that brought down Broward Sheriff Ken Jenne.

Since then, Gov. Rick Scott, who appointed Kisslan in July, has refused to answer questions about the matter or explain why a state background check failed to uncover Kisslan’s involvement in Jenne’s criminal scheme. Kisslan was BSO legal counsel under Sheriff Jenne.

Scott, however, has a little-known reason for not wanting to talk about Jenne. The governor and the convicted felon are old friends and business associates.

“I’ve just known (Scott) for years and years and years,” Jenne told this reporter in 2005.

Scott was a wealthy private investor in April 2003 when he funneled hundreds of thousands of dollars Sheriff Jenne’s way by recommending him for a lucrative seat on the board of directors of CyberGuard, a Deerfield Beach computer security company. At the time, Scott owned nearly 40 percent of CyberGuard’s stock.

cyberguardlogoLess than three years later, California-based Secure Computing bought CyberGuard for $295 million in stock and cash. Cyberguard’s annual report made public a few weeks after the announcement listed Jenne as the beneficial owner of 42,555 CyberGuard shares valued at $375,000 under the terms of the deal.

Jenne acquired most, if not all of those shares via stock options he received for serving on CyberGuard’s board.

CyberGuard’s core business was building and selling digital firewalls to shield computer networks from intruders. Its “target customers,” according to U.S. Securities and Exchange Commission records, were “companies, major financial institutions and government entities.” Cyberguard did not identify specific clients.

Why Scott wanted Jenne on CyberGuard’s board is not known, and neither the governor nor Jenne would comment for this story. Jenne, who went to prison for mail fraud and not disclosing benefits he received from BSO vendors on his income tax returns, previously said CyberGuard was not a BSO vendor.

SCOTT BUYS A STAKE 

Richard L. Scott, as the governor was known before he ran for office, made his initial investment in Cyberguard in August 1999 via Fernwood Partners II, which acquired $3.7 million in company debt, according to SEC and other records. Fernwood was a Delaware firm that bought, sold and invested in the stock and debt of other companies. Scott and his wife, Annette, were major equity shareholders in Fernwood.

As part of the deal, CyberGuard added Scott’s brother, William Scott, and former Columbia/HCA Healthcare executive David Manning to its board of directors. Gov. Scott was Columbia/HCA’s chief executive until 1997 when he resigned amid a federal Medicare fraud investigation.

Fernwood went on to acquire nearly 50 percent of CyberGuard before it was dissolved and its holdings distributed to its members in March 2003, SEC records say.

With that, Scott became CyberGuard’s largest individual shareholder. By August 2005, when Secure Computing announced it would acquire all of Cyberguard’s shares, Scott owned 8,249,597 shares worth $72,356,000 in cash and Secure Computing shares, according to SEC records.

Scott’s total investment in Cyberguard: about $10 million, the records indicate.

“When I initially made my investments in Cyberguard, I felt Cyberguard had superior products in the firewall industry,” Scott said in the press release that announced approval of the takeover by Cyberguard’s shareholders. “What was accomplished over the last five years is a testament to the management team we put in place and their commitment and focus.”

Scott kept nearly 4 million Secure shares when he joined Secure’s board after the transaction was completed in January 2006. He was briefly chairman before computer giant McAfee bought Secure in a $462 million cash deal in 2008. Scott walked away with $23 million.

INVESTMENT PARTNER RUNS SCOTT’S ‘BLIND TRUST’

SEC records identify Scott crony Alan L. Bazaar as another member of Fernwood Partners in the CyberGuard investment.

For a decade before Scott was elected governor, Bazaar helped manage his portfolio at the better-known Richard L. Scott Investments LLC. Today, as co-CEO of New York’s Hollow Brook Wealth Management, Bazaar oversees the “blind trust” established by the governor in 2011 to avoid conflicts of interest and manage much of his large personal investment portfolio.

Lobbyist William Rubin with Gov. Rick Scott Photo: Tampa Bay Times

Lobbyist William Rubin with Gov. Rick Scott Photo: Tampa Bay Times

Serving with Scott and Jenne on Cyberguard’s board was Fort Lauderdale lobbyist William D. Rubin, a longtime friend and political supporter of both men. Rubin was listed in SEC records as having 58,000 CyberGuard shares worth $510,000 in cash and stock.

In 2003, while together on CyberGuard’s board, Sheriff Jenne made Rubin an “honorary deputy sheriff.” He also bestowed a BSO “Friend of Children Award” on a lobbyist in Rubin’s firm, Noreen Reboso.

The Tampa Bay Times quoted Rubin about his friendship with Scott on the day of Scott’s election in November 2010.

“I got to know Rick in 1991 when he started his hospital company, and we’ve stayed close ever since. I love him,” said Rubin, who in 2009 lobbied in Tallahassee on behalf of Solantic, Scott’s walk-in clinic company. “He’s a very good friend. We’ve stayed in touch ever since.”

Rubin added that he would not benefit from Scott being in the Governor’s office. “I won’t be. I’ll quickly dispel that perception.”

Nevertheless, Rubin is today registered to lobby Scott and the Executive Branch on behalf of nearly 60 corporate and government clients, including Scott’s old firm, now called HCA Healthcare, and BSO under Sheriff Scott Israel.

Rubin did not respond to a request for comment.

Knowledgeable sources have said privately that they believe Rubin and/or Jenne prevailed upon Scott to appoint Sunrise City Attorney Kimberly Kisslan to the board of the North Broward Hospital District, also known as Broward Health, but there is no evidence to support it.

KISSLAN RESIGNATION TRIGGERS QUESTIONS

Kisslan resigned Oct. 18 – three months into her four-year term and two days after BrowardBulldog.org reported about her grand jury appearance under a grant of immunity.

Kisslan got into trouble with federal prosecutors due to personal legal work she did for Jenne while he was sheriff. Specifically, she and a BSO vendor coordinated the demolition of an old house with code compliance issues that Jenne owned in Lake Worth.

At the same time, Kisslan was negotiating a BSO lease extension with the vendor – quickly signed by Jenne – that called for the police agency to lease additional office space from him at a cost of $348,000.

The vendor, developer Philip Procacci, later paid the $8,130 demolition cost for Jenne and the matter became part of the corruption charges to which the sheriff pleaded guilty in September 2007.

Kisslan’s role in Jenne’s scheme is spelled out in public court documents filed at the time of his plea. Yet despite a background check, Gov. Scott was unaware of that damaging information when he installed Kisslan on Broward Health’s board, said spokesman John Tupps.

The governor’s office declined to discuss the vetting process for gubernatorial appointees.

There is, however, an intriguing Broward connection inside Scott’s Executive Appointments Office that dovetails back to both Jenne and Rubin.

Former Fort Lauderdale resident Carrie O’Rourke is the governor’s $116,000-a-year Director of External Affairs. Her duties include oversight of gubernatorial appointments.

From 2007-2009, O’Rourke was director of organizational development in Fort Lauderdale for Edify, LLC. That’s the health benefits consulting firm whose owners included convicted Ponzi schemer Scott Rothstein.

Jenne worked at Rothstein’s law firm after his release from prison in 2008. And in September 2009, New Times reported that Edify paid Jenne’s son, former State Rep. Evan Jenne, $30,000 as a consultant.

As finance director for Scott’s inaugural committee, O’Rourke worked with Rubin and his lobbying firm, The Rubin Group, to select candidates for the governor’s transition healthcare team.

In December 2011, as the governor’s deputy chief of staff, O’Rourke traveled to Israel with Rubin and his wife Lys as part of a 48-member trade mission delegation led by Gov. Scott, according to Sunshine State News.

Hidden owner of ‘news’ site gave $120,000 to group that paid sheriff’s campaign manager

By Dan Christensen, BrowardBulldog.org 

Broward Bugle owner Andrew Miller, right, with Roger Stone  Photo: Dan Christensen

Broward Bugle owner Andrew Miller, right, with Roger Stone Photo: Dan Christensen

The registered owner of an online Broward “news” operation contributed over $120,000 to a political group that made payments to a firm owned by Sheriff Scott Israel’s campaign manager, Amy Rose, and to her husband.

Andrew James Miller, 29, gave the money to Taxpayers for Integrity in Government last August, amid Israel’s successful bid to unseat then-Sheriff Al Lamberti, election records show.

Miller is a protégé of flamboyant South Florida-based political consultant and prospective gubernatorial candidate, Roger Stone. Miller describes himself on his Twitter page as a “political pirate, provocateur, street fighter.”

Internet domain registration records obtained by BrowardBulldog.org identify Miller as the owner of record of the Broward Bugle, which calls itself “your new source for political and governmental news.” The records list Miller’s address as Stone’s former offices at 401 E. Las Olas Boulevard, Fort Lauderdale.

A SECRETIVE NEWS SITE

The secretive Bugle does not identify its publisher or staffers by their real names. Its Hollywood attorney, Holiday Hunt Russell, would not answer questions about his client. Stone, an Israel supporter with a reputation as a political dirty trickster, has been rumored for months to be behind it because of stories with headlines like last month’s “Lamberti has Chutzpah.”

“I’m nervous talking about this. I don’t want to say something wrong,” said Miller when asked about the Bugle. “I’m not the one running it. I know who is, but I’m not at liberty to give any names. It’s above my pay grade.”

Said Stone, “I’m not going to talk about the Bugle, I’m really not.

Taxpayers for Integrity in Government is a Florida electioneering communications organization (ECO) which raised more than $1.2 million last year. Its chair is Todd Wilder, a Tallahassee political consultant and former top aide to disgraced ex-Broward Sheriff Ken Jenne.

Miller, who said he is a friend of Wilder, lives in a three-story walk-up in an older building on Manhattan’s upper east side. He said he makes a living as a political operative, but that Stone doesn’t pay him. However, with Stone, he worked last year for Gary Johnson, the former governor of New Mexico and Libertarian Party nominee for president.

Andrew Miller with Libertarian Party presidential nominee Gary Johnson in a photo he tweeted last year

Andrew Miller with Libertarian Party presidential nominee Gary Johnson in a photo he tweeted last year

This year, Miller is helping another Stone client, Kristin Davis, a former madam running for mayor of New York City as a Libertarian. Miller’s stepmother, Dianne Thorne, is Stone’s longtime assistant and chairs the Libertarians’ Miami-Dade chapter.

Stone called Miller a “trust fund baby” from a wealthy Missouri family who’s “like a son to me.”

Miller, however, told a reporter he’s not wealthy. He also said he had no specific candidate or issue in mind when he decided in advance of last summer’s primary election to give $120,200 to Taxpayers for Integrity – his lone statewide political contribution last year, according to state records.

So why did Miller contribute such a large sum to an obscure group that, unlike candidates, can accept unlimited contributions to influence political campaigns?

“DOING MY CIVIC DUTY”

“I was just doing my civic duty. Making the world a better place,” said Miller. Asked where the money from, he said “my bank account.”

Two weeks before last November’s general election, Taxpayers for Integrity, paid $10,000 to Amy Rose’s firm, Win on the Ground Consulting, and another $5,000 to her husband, Wally Eccleston.

Those payments were unrelated to the sheriff’s race, according to Rose and Wilder. Rose said the payments were for various data and fundraising lists.

Taxpayers for Integrity, however, was on Israel’s side in the sheriff’s race. The Sun-Sentinel reported in August that Wilder’s group used email, mail and phone calls to tout Israel and attack his opponent during the primary.

Broward Sheriff Scott Israel

Broward Sheriff Scott Israel

The Bugle, too, has been on Israel’s side since it began publishing last year, with most of its coverage either positive about Israel or negative about Lamberti. The Bugle also has attacked Barbra Stern, the new Florida elections commissioner, whose mother, lobbyist and consultant Judy Stern, ran Israel’s losing campaign for sheriff in 2008.

Rose said she and Eccleston will soon join BSO. Rose starts at the end of the month as Israel’s assistant chief of staff. Eccleston is to work under Finance Director Angelo Castillo, though no start date has been set.

Stone, 60, who enjoys his reputation for political hardball, is a longtime Republican operative who cut his professional teeth working for Richard Nixon’s notorious CREEP, the Committee to Re-Elect the President. Nixon’s face is tattooed on his back.

He says he became disillusioned with the Republican Party last year and switched his allegiance to the tiny Libertarian Party. He announced his interest in a 2014 run for governor in February.

STONE’S $1.6 MILLION IN TAX LIENS

But some Libertarian party leaders don’t believe Stone. Bill Still, a candidate for the party’s presidential nomination last year, said Stone and sidekick Miller appeared to him to be Republican moles looking to take over or destroy the Libertarian Party.

“That was my feeling, yes,” said Still.

Stone, who lives in Miami Beach, is a former business partner of imprisoned Fort Lauderdale Ponzi schemer Scott Rothstein.

The South Florida Business Journal reported last month that he agreed to pay $18,000 to settle a lawsuit stemming from the bankruptcy of Rothstein’s law firm, Rothstein Rosenfeldt Adler. A bankruptcy court trustee had sued alleging Stone and his companies were paid $400,000 in professional fees that provided no benefit to the law firm.

Stone, however, has not resolved more serious financial claims by the Internal Revenue Service.

Five tax liens filed in Miami-Dade say Stone and his wife, Nydia, owe more than $1.6 million in unpaid back taxes.  The assessments are for the years 2006-2011.

Stone said his attorneys are in talks with the IRS to resolve the matter.

TD Bank accused of altering evidence by victim of Scott Rothstein’s Ponzi scheme

By Brian Kindle, Special to BrowardBulldog.org

Rothstein, Rosenfeldt & Adler publicity photo

TD Bank lost a $67 million jury verdict in January in a case related to the notorious Fort Lauderdale lawyer and swindler Scott Rothstein. Now, the Canadian-owned bank is accused of withholding evidence during the 70-day trial.

Coquina Investments, one of hundreds of reported victims of Rothstein’s $1.2 billion Ponzi scheme, has filed court papers in the case it won accusing TD Bank of “altering” its internal assessment that Rothstein’s law firm was a “high risk” for money laundering.  Keeping that secret could have shielded the bank from further liability.

Coquina, based in Corpus Christi, Texas, has asked the court to sanction the bank.

Coquina’s successful lawsuit argued the bank aided and abetted the enormous fraud. Rothstein testified in a December deposition that bankers were key to his scheme, and that he paid off TD Bank’s regional vice president, Frank Spinosa, according to the Sun-Sentinel.

Rothstein, who once lived a flashy lifestyle and hobnobbed with politicians, is currently serving 50 years in prison.

The alleged evidence of TD Bank’s duplicity at trial are 2009 “Customer Due Diligence” forms for Rothstein, Rosenfeldt and Adler. Such forms are used to evaluate the risk involved in dealings with customers and assessments.

Lawyers for Coquina assert the bank removed the warning “HIGH RISK” from the form and changed its coloring from red to black when presenting the evidence in court. At trial, the bank produced a money-laundering expert who stated that Rothstein’s firm was not a high risk, according to post-verdict court filings made late last month.

Coquina’s lawyers call that a “fraud on the court and jury” by TD Bank.

TD Bank acknowledged a mistake in its own court filings last week, but said it was a “copying error” by clerical staff that did not hurt the plaintiff’s case. It has apologized. The bank also said Coquina’s lawyers knew of the gaffe and referred to it in their closing arguments to the jury.

TD Bank declined requests for comment by ACFCS.org, citing its policy of not commenting on “pending litigation.”

FRAUD OR MISTAKE?

Coquina’s Miami lawyer David Mandel, a former federal prosecutor, filed court papers this week asserting the “the trial would have proceeded much differently had the defendant produced the true document.” Coquina’s $67 million verdict included $35 million in punitive damages. Mandel had asked the jury to award $140 million in punitive damages.

The jury may have awarded higher damages, Mandel argued, adding that the altered document affected cross-examinations.

TD Bank’s response did not address the testimony of their witness, money-laundering expert Ivan Garces.

Garces testified that the bank did not consider Rothstein, Rosenfeldt and Adler high risk.

“It’s your opinion, sir, that TD Bank did not consider RRA [Rothstein’s law firm] to be a high-risk customer of the bank; is that right?” a Coquina lawyer asked Garces on the stand.

Yes, ma’am. That’s correct” Garces replied.

Mandel has asked US District Court Judge Marcia G. Cooke to sanction TD Bank, and refer the matter to the US Department of Justice for possible criminal investigation. Federal law makes it a crime to intentionally alter a document for use in a trial.

Brian Kindle is editorial director for ACFCS.ORG, the Association of Certified Financial Crime Specialists, an independent research and information organization based in Miami whose members are financial crime experts in the public and private sector.

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