Rothstein firm's Villegas charged with conspiracy

By Palm Beach Business.com

FORT LAUDERDALE — The feds want Debra Villegas to cough up $1.2 billion. Yes, $1.2 billion.

The FBI has charged Villegas, formerly chief operating officer of the once high-profile, now notorious Fort Lauderdale law firm of Rothstein, Rothstein & Adler with conspiracy to commit money laundering in connection with a massive Ponzi scheme the firm ran. Name partner Scott Rothstein has pleaded guilty to the scam and is scheduled to be sentenced on May 6.

According to court documents, Villegas and her fellow conspirators, ran a scam involving the sale of confidential settlement agreements in sexual harassment and whistle blower cases that were purportedly handled by attorneys at Rothstein law firm. Villegas allegedly assisted in the fabricating names of fictitious plaintiffs and defendants who were supposed to be the parties in the confidential settlements.

Also, Villegas allegedly forged the names of the fictitious plaintiffs and defendants on the “confidential agreements.”

Investors would wire money to various banks, as instructed by the conspirators. The money then would be transferred to other banks, where the scamsters could access it.

The Feds want Villegas to forfeit $1.2 billion, her interest in a home in Weston and a 2009 Maserati.

“We sometimes must make tough choices in our lives, and in this case Debra Villegas made the wrong choice,” said FBI Special Agent in Charge John V. Gillies. “She could have done the right thing and reported Rothstein’s fraud to law enforcement, but instead she assisted him in carrying out the scheme. She chose greed over her integrity and now she will have to pay the price for her actions.”

Said U.S. Attorney Jeffrey H. Sloma: “Investment fraud schemes target people from all walks of life and often result in the loss of their life's savings. The best way to avoid being victimized by fraudsters is to do your homework and to ask hard questions before investing. As today’s case demonstrates, we remain committed to prosecuting investment fraud schemes and all who participate, from top to bottom.”