The Office of the United States Attorney for the Southern District of Florida opened a Grand Jury indictment on October 10, 2014 and made a new arrest in the Rothstein scam. A now “former” regional vice president of TD Bank, Mr. Frank Spinosa, age 53, was charged in Federal Court with wire fraud and conspiracy. Released on $250,000 bond with an electronic monitor, his attorney Samuel Rabin, negotiated terms of release for his client at the initial appearance hearing held before the US Federal Magistrate in Fort Lauderdale.
Arraignment has been set for October 24, 2014. The investigation was known to Mr. Spinosa for several years, his attorney stated. The Grand Jury Indictment was unsealed on Friday morning, October 10, 2014, and comes within days of the deadline set by law for arrests in this ongoing case. The indictment of Mr. Spinosa contains charges that can result in a maximum penalty of well over twenty years in federal prison and fines of over $250,000.00. Because each of the five counts can resolve with a twenty year sentence, Mr. Spinosa is facing a possible one hundred years in prison. Scott Rothstein was sentenced to fifty years and is currently serving his sentence at an unknown federal detention facility.
The charges against Mr. Spinosa allege that Spinosa committed fraud by giving a “false sense of security” to potential and actual investors. The indictment goes on to state that as a result of the alleged inducements, hundreds of millions of dollars were invested in Rothstein’s investment scam. Spinosa was fired by TD Bank in October 2009 when the Rothstein scam first came to the attention of the public.