MIAMI – In his ongoing marathon deposition session going on at the federal courthouse in Miami, Ponzi schemer has pointed the finger at his old friend, car dealer Ted Morse.
Rothstein, according to attorneys present at the deposition, has testified that Morse was aware that legal settlements at the heart of the fraud were bogus and that Morse helped him commit a legal fraud targetting Morse's own father, car mogul Ed Morse, for more than $50 million.
The plan, said attorney and Rothstein depositioner Bill Scherer, was to keep the Ponzi scheme going long enough to get Morse's money back -- and more.
Scherer, who represents 50 alleged Rothstein fraud victims, didn't waste time in acting on the information. This morning his law firm filed a massive lawsuit against Ted Morse, Morse Operations, Inc., and the Ed Morse Automotive Group for damages.
In it, Scherer notes that the Morses have portrayed themselves as victims.
"However, the evidence and information provided by Rothstein paint a very different picture of Ted Morse and his involvement. These facts show that Ted was not Rothstein's hapless victim; rather, he was an invaluable charter member -- and one of a handful of beneficiaries -- of Rothstein's massive fraud."
Morse attorney John Mullin refused to comment on Rothstein's allegations or Scherer's lawsuit outside the federal courthouse.
The lawsuit includes new details and numerous emails that characterize the relationship between Rothstein and Morse, which involved millions in investments in the scheme from Ted Morse and Morse Operations.
In the emails, Rothstein engages in what Scherer calls "Ponzi-speak," addressing Morse as "Car Dawg," and himself as a "hood," a "pimp," "the little Jewish banker," "Banker from Da Bronx," and TPOFD ("The Prince of F--cking Darkness"). Rothstein referred to his RRA law firm as "The International Bank of Wow."
In one email, Rothstein tells Morse to "enjoy your ill-begotten booty" and in another he says he'll join him for a "ceeeeeegar after you do your dastardly deed :-)."
There is, however, no direct proof contained in the lawsuit that Ted Morse knew it was a Ponzi scheme.