Rothstein auction nets $5.8M

06/03/2010

South Florida Business Journal - by Paul Brinkmann

Hundreds of bidders showed up at the last minute for this morning’s auction of super cars, boats and other watercraft that once belonged to disgraced Ponzi schemer Scott Rothstein. When it was finally over, about two hours later, Rothstein's toys had sold for $5.8 million.

The top seller was a yacht dubbed the "Princess Kimberly" named for Rothstein's wife.

The auction was to start at 11 a.m., but delays caused by last-minute registrants pushed that back an hour. Bidding finally got underway a little after noon. The first thing to go was a 2009 Yamaha Waverunner. The winning bid was $9,000.

Well-known lobbyist Ron Book of Aventura was among those waiting to bid.

“I’m going to bid on the Lamborghini, and the Ferraris,” said Book, who arrived early.

Several others said they felt betrayed or cheated by Rothstein, and that their bid may be a small way to recover something they lost in the disbarred attorney’s $1.2 billion Ponzi scheme.

Businessman Alan Winter of Fort Lauderdale said Rothstein disappointed him by reneging on a promise to pay a $100,000 reward for Broward County Crime Stoppers. Winter, who is chairman of Crime Stoppers’ fundraising committee, also owns Opa Locka-based Moto Connection, a motorcycle dealership. He had his eye on a 1967 Corvette convertible.

The auction of 18 vehicles and watercraft, includes a black-and-blue, 2007 Bugatti Veyron, which sells new for more than $1 million.

On Wednesday, auctioneer Rick Levin said the cars receiving the most attention were the Bugatti, Corvette, 2009 Bentley Continental GTC and 2007 Rolls-Royce Phantom.

The Bentley belonged to Rothstein’s wife Kimberly. Winter said he understands there is a long waiting list at local car dealerships for similar Bentleys.

At least one bidder was discouraged by the long wait and last-minute surge of bidders.

George Ford, of West Palm Beach, intended to bid on two WaveRunners and a 2008 Cadillac Escalade. But he left after waiting for a half hour.

Ford said he felt that an attorney from the defunct Rothstein Rosenfeldt Adler law firm had botched a lawsuit he’d filed against former business partner.

Rothstein is awaiting sentencing on June 9 on charges he ran a $1.2 billion Ponzi scheme, using his law firm as a front. The cars and boats were part of his show to impress investors, who bought interest in phony lawsuit settlements.

Rothstein owned most of his vehicles for just a year or so. The 2010 Lamborghini, for example, has about 100 miles on it, Hall said.

Some of the cars, especially the Bugatti, are considered so exclusive they have attracted well-known and celebrity bidders, who usually employ a proxy bidder to remain anonymous.

This second auction is sure to yield far more money for victims and creditors than the first did. That January sale of ornate office furniture and knickknacks from Rothstein’s now-defunct law firm netted just $182,000.

Other items to be auctioned are: