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Former Broker Michael Szafranski Sentenced for Role in Scott Rothstein Ponzi Scheme

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.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

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