Seven of Rothstein's employees and associates have been charged to date in the scheme. Five pleaded guilty and were sentenced. A federal prosecutor attended the deposition and kept Rothstein from answering some questions because of the investigation.
Investors with claims against the law firm are trying to find out where Rothstein spent sizable amounts of cash he kept in the office, with an eye to claiming that some was paid to abettors of the fraud and should be returned.
'Money Laundering'
A lawyer asked Rothstein what he spent money on.
"Money laundering, extortion, physical violence," he said. "Influencing law enforcement, influencing bankers, influencing businessmen, influencing business owners, a whole myriad of things."
Rothstein said he bribed law officers and judges and that he laundered money for organized-crime figures. The prosecutor didn't allow him to name anyone.
Rothstein said he paid for female "escorts" for police officers and didn't worry about being caught.
He said he tried to stop his employees' dealing in marijuana, which he said was common at the firm.
"In the office, in the garage, outside the office, I had some partners that couldn't come to work without smoking pot," he said. "I also found out they were actually dealing drugs in the office. I actually tried to put a stop to that."
Rothstein said he worried the drug dealing might get someone's attention. He didn't worry about the prostitutes in the office.
Police Department