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Florida Woman Charged with Ponzi Scheme Money Laundering
A former high-ranking executive at a Fort Lauderdale law firm has been charged with conspiracy to launder money and defraud a financial institution in connection with a massive Ponzi scheme.
Irene Shannon, 50, of Miami, was the Chief Financial Officer of Rothstein, Rosenfeldt and Adler, P.A. (RRA), a law firm that was used by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme in 2009.
According to the information filed in federal court, Shannon oversaw the accounting functions of RRA, including the deposits and withdrawals made by RRA and Rothstein at TD Bank and other financial institutions. In furtherance of the Ponzi scheme, Shannon transferred hundreds of millions of dollars obtained from investors to pay prior investors in the scheme and to supplement and support the operation and activities of RRA, among other purposes.
The information further charges that Shannon was well aware that hundreds of millions of dollars were not being held in trust accounts for investors, contrary to what those investors had been told, and that the funds were instead being disbursed to further Rothstein’s fraudulent scheme. The information also charges that Shannon utilized her position to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.”
“Once again, the information filed today reaffirms that Rothstein’s massive fraud could not have been the work of one person,” said U.S. Attorney Wifredo A. Ferrer. “As alleged in the information, Irene Shannon played an important role in carrying out Rothstein’s fraud and concealing it from the investors. Indeed, as Chief Financial Officer of RRA, Shannon knew hundreds of millions of dollars of investor funds were not being held in trust accounts and that the funds were being disbursed to further Rothstein’s fraudulent scheme.”
Shannon is charged with conspiracy to commit money laundering and to defraud a financial institution, in violation of 18 U.S.C. § 371. If convicted, she faces a maximum statutory sentence of up to five years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan. An information is only an accusation, and Shannon is presumed innocent until proven guilty.
Miami, Florida – May 22, 2023
Defendant: Irene Shannon
Criminal Charges: Conspiracy to commit money laundering and to defraud a financial institution
City and State: Miami, Florida
Exact Date: May 22, 2023
Sentence or Outcome: Up to 5 years in prison
Dollar Amounts: Hundreds of millions of dollars
Key Facts
- State: Florida
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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