When the money was rolling in from investors, Scott W. Rothstein, a lawyer in Fort Lauderdale, Fla., bought his wife, Kimberly, more than $1 million in jewelry, including an opulent 12-carat yellow diamond ring. He lived in a multimillion-dollar waterfront mansion and regularly wrote big checks to charities and politicians.
But the good life ended in 2009, when the government accused him of defrauding investors of up to $400 million with a Ponzi scheme based on selling stakes in legal settlements. Both Rothsteins went to jail.
via Despite Exposure of Madoff Fraud, New Ponzi Schemes Emerge – NYTimes.com.