Michael Szafranski, a financial advisor for Scott Rothstein, was sentenced
to two and a half years in prison after pleading guilty to wire fraud
charges stemming from a Ponzi scheme led by Rothstein.
Rothstein, who was an attorney with Rothstein Rosenfeldt Adler, was sentenced
to 50 years in prison in 2010 on charges of money laundering, wire fraud,
and racketeering. This was a $1.2 billion Ponzi scheme in which Szafranski
and more than two dozen other individuals participated.
FINRA’s report on Szafranski shows that Szafranski failed to file
annual financial statements for his investment firm in 2004, 2005, and
2006, and was issued a final regulatory notice in 2008. Since 2007, he
has not been a registered and licensed financial advisor.
According to the criminal
indictment of Szafranski, Rothstein utilized him to assist in carrying out various
aspects of the fraudulent investment scheme. Prosecutors alleged that
Szafranski agreed to engage in acts intended to deceive and/or to engage
in conduct to unlawfully obtain money and property by means of false and
fraudulent pretenses. Specifically, Szafranski maintained the role of
independent third-party verifier for transactions involving the Ponzi
scheme investments and solicited additional investments in the scheme
for a total amount of $200 million – resulting in Szafranski receiving
millions of dollars in compensation.
Meyer Wilson is dedicated to helping investors recover their losses should
they fall victim to investment fraud. Our securities fraud attorneys understand
the methods to navigate the complex legal system that lies ahead. If you
have been the victim of investment fraud, we encourage you to reach out
to us for a free consultation today to discuss your case with our team.