Michael Szafranski, Wire Fraud Conspiracy, Florida 2015

Guilty Plea in Rothstein Case: Michael Szafranski Admits to Wire Fraud Conspiracy

An investor advisor has pleaded guilty to his involvement in the massive Ponzi scheme orchestrated by Scott W. Rothstein, the former chairman and chief executive officer of the law firm Rothstein, Rosenfeldt and Adler, P.A. (RRA). Michael Szafranski, 37, of Surfside, has admitted to conspiracy to commit wire fraud, a crime that carries a maximum statutory sentence of five years in prison.

Szafranski, a registered investment advisor, conspired with Rothstein to induce certain persons into investing money in fictitious confidential settlements. He made material misstatements and material omissions to these investors, and secretly received compensation from Rothstein and RRA while employed by them.

The scheme, which was discovered in 2009, involved the sale of fictitious confidential settlements through RRA. Szafranski’s guilty plea is a significant development in the ongoing investigation into the Rothstein case.

The case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan. U.S. District Court Judge William P. Dimitrouleas will preside over Szafranski’s sentencing, scheduled for October 21, 2015 at 1:15 p.m.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, commended the investigative efforts of the IRS-CI and the FBI. This case is a prime example of the importance of collaboration between law enforcement agencies in bringing white-collar criminals to justice.

Related court documents and information can be found on the websites of the United States Attorney’s Office for the Southern District of Florida and the District Court for the Southern District of Florida.

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