Rothenberg pleaded guilty at the federal courthouse in Charlottesville. (Photo by Flickr user OZinOH)
A Richmond finance manager pleaded guilty Tuesday in federal court to defrauding his rock star client, but the question of exactly how much money was misappropriated remains open.
Getty Andrew Rothenberg, who for more than a decade handled the personal finances of Dave Matthews Band member and Charlottesville resident Boyd Tinsley, is facing up to 30 years in prison and a fine of up to $1 million.
Rothenberg was charged this month with one count of felony wire fraud on claims of skimming money from Tinsley’s bank accounts.
“I’m here because I committed wire fraud,” Rothenberg, 39, said to Judge Glen Conrad in Charlottesville federal court.
Rothenberg has been cooperating with federal prosecutors and will likely receive a downgrade in his sentence as part of a plea agreement with the U.S. Attorney’s Office.
U.S. Attorney Tim Heaphy told the court Tuesday that his office believes the range of Rothenberg’s theft is between $1 million and $7 million.
![Read the charging document [PDF]](/wp-content/uploads/2013/07/Rothenberg-file.jpg "Financial manager pleads guilty to fraud 2")
Click the image above to read the charges [PDF]
Rothenberg and his attorney dispute that amount.
“I do not agree with that,” Rothenberg told the judge. “It’s more in the realm of $400,000 or below.” The value of the funds will help determine the potential length of Rothenberg’s sentence.
Rothenberg has agreed to make full restitution to Tinsley, who asked that the court not give Rothenberg any prison time for the offense. Both sides said Rothenberg and his attorney have been in discussions with Tinsley’s camp to work out repayment.
Charlottesville attorney Bud Treakle is working on Tinsley’s behalf in the case. Treakle was in attendance at Tuesday’s hearing. Tinsley was not.
Rothenberg, who graduated from St. Christopher’s School and attended the University of Georgia, told the judge that he works in real estate in Richmond, although not in any licensed position. He lives in the West End near St. Christopher’s School.
“This is an awfully big day in your life,” Conrad told Rothenberg. “It’s going to change the remaining course of your life.”
He appeared in court Tuesday in a black suit, red tie and a dark tan. He answered the judge’s questions with little hesitation and left the courtroom quickly after the hearing ended.
For his services to Tinsley, Rothenberg was initially paid $50,000 a year, according to court documents. That was eventually increased to $60,000.
The trust between the two was such that Rothenberg was granted power of attorney over Tinsley’s affairs and had the ability to set up bank accounts in his name and handle the funds, the U.S. Attorney found.
Heaphy said Rothenberg would email Tinsley when his bills were coming due. Rothenberg’s scheme involved using “padded” amounts and in some cases “made-up figures.” He would keep the extra money for himself, according to the case.
Rothenberg allegedly withdrew money or wrote checks to himself for his personal use, Heaphy told the judge. He helped Tinsley set up a $2 million line of credit with Union First Market Bank. And he helped Tinsley with a $1.6 million investment in a hedge fund, from which Heaphy said Rothenberg also made withdrawals.
Heaphy said Tinsley also put $150,000 into a “failed entertainment venture” devised by Rothenberg.
In a brief interview after Tuesday’s hearing, Heaphy said the federal case unfolded after Tinsley confronted Rothenberg about the fraud in early 2012. Tinsley then notified the FBI.
“I commend Mr. Tinsley for coming forward,” Heaphy said.
Rothenberg’s next hearing is set for Sept. 17 at 2:30 p.m. in Charlottesville, where both sides will present arguments regarding the amount of money in question. He’ll remain free on a personal recognizance bond until sentencing.
Rothenberg’s attorney, Tom Bondurant of Gentry Locke Rakes in Roanoke, also addressed the media after the hearing. While they don’t dispute fraud took place, Bondurant said the disagreement over the amount has to do with how some of the money was exchanged and openly commingled between Tinsley and Rothenberg. Some were joint investments and gifts, for example, he said.
“The amounts being tossed around [by the prosecution] are inaccurate,” Bondurant said.
“Andy Rothenberg is a good man,” he said. “He got caught up in some unfortunate circumstances.”
Rothenberg pleaded guilty at the federal courthouse in Charlottesville. (Photo by Flickr user OZinOH)
A Richmond finance manager pleaded guilty Tuesday in federal court to defrauding his rock star client, but the question of exactly how much money was misappropriated remains open.
Getty Andrew Rothenberg, who for more than a decade handled the personal finances of Dave Matthews Band member and Charlottesville resident Boyd Tinsley, is facing up to 30 years in prison and a fine of up to $1 million.
Rothenberg was charged this month with one count of felony wire fraud on claims of skimming money from Tinsley’s bank accounts.
“I’m here because I committed wire fraud,” Rothenberg, 39, said to Judge Glen Conrad in Charlottesville federal court.
Rothenberg has been cooperating with federal prosecutors and will likely receive a downgrade in his sentence as part of a plea agreement with the U.S. Attorney’s Office.
U.S. Attorney Tim Heaphy told the court Tuesday that his office believes the range of Rothenberg’s theft is between $1 million and $7 million.
Click the image above to read the charges [PDF]
Rothenberg and his attorney dispute that amount.
“I do not agree with that,” Rothenberg told the judge. “It’s more in the realm of $400,000 or below.” The value of the funds will help determine the potential length of Rothenberg’s sentence.
Rothenberg has agreed to make full restitution to Tinsley, who asked that the court not give Rothenberg any prison time for the offense. Both sides said Rothenberg and his attorney have been in discussions with Tinsley’s camp to work out repayment.
Charlottesville attorney Bud Treakle is working on Tinsley’s behalf in the case. Treakle was in attendance at Tuesday’s hearing. Tinsley was not.
Rothenberg, who graduated from St. Christopher’s School and attended the University of Georgia, told the judge that he works in real estate in Richmond, although not in any licensed position. He lives in the West End near St. Christopher’s School.
“This is an awfully big day in your life,” Conrad told Rothenberg. “It’s going to change the remaining course of your life.”
He appeared in court Tuesday in a black suit, red tie and a dark tan. He answered the judge’s questions with little hesitation and left the courtroom quickly after the hearing ended.
For his services to Tinsley, Rothenberg was initially paid $50,000 a year, according to court documents. That was eventually increased to $60,000.
The trust between the two was such that Rothenberg was granted power of attorney over Tinsley’s affairs and had the ability to set up bank accounts in his name and handle the funds, the U.S. Attorney found.
Heaphy said Rothenberg would email Tinsley when his bills were coming due. Rothenberg’s scheme involved using “padded” amounts and in some cases “made-up figures.” He would keep the extra money for himself, according to the case.
Rothenberg allegedly withdrew money or wrote checks to himself for his personal use, Heaphy told the judge. He helped Tinsley set up a $2 million line of credit with Union First Market Bank. And he helped Tinsley with a $1.6 million investment in a hedge fund, from which Heaphy said Rothenberg also made withdrawals.
Heaphy said Tinsley also put $150,000 into a “failed entertainment venture” devised by Rothenberg.
In a brief interview after Tuesday’s hearing, Heaphy said the federal case unfolded after Tinsley confronted Rothenberg about the fraud in early 2012. Tinsley then notified the FBI.
“I commend Mr. Tinsley for coming forward,” Heaphy said.
Rothenberg’s next hearing is set for Sept. 17 at 2:30 p.m. in Charlottesville, where both sides will present arguments regarding the amount of money in question. He’ll remain free on a personal recognizance bond until sentencing.
Rothenberg’s attorney, Tom Bondurant of Gentry Locke Rakes in Roanoke, also addressed the media after the hearing. While they don’t dispute fraud took place, Bondurant said the disagreement over the amount has to do with how some of the money was exchanged and openly commingled between Tinsley and Rothenberg. Some were joint investments and gifts, for example, he said.
“The amounts being tossed around [by the prosecution] are inaccurate,” Bondurant said.
“Andy Rothenberg is a good man,” he said. “He got caught up in some unfortunate circumstances.”
Hmmmmm,
A “good man” doesn’t cheat, defraud and betray the trust of his client…Especially one who is gracious enough to ask the court that this “good man” not receive any prison time.