Rothstein Trustee Says Versace Mansion Suit Violates Stay

Law360, New York (May 31, 2013, 6:49 PM EDT) -- The trustee overseeing the Chapter 11 liquidation of Ponzi schemer Scott Rothstein's law firm asked a Florida federal court Friday to halt state court litigation over Gianni Versace's former South Beach mansion, in which Rothstein had invested money.

Trustee Herbert Stettin said a lawsuit filed this month in Florida state court by 1116 Ocean Drive LLC — in which VM South Beach LLC intervened — violates an automatic stay imposed under bankruptcy law and threatens his interests. VM and 1116 Ocean Drive also claim ownership stakes...
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