Well, it was the go-go seventies.
The money allegedly belonged to plaintiff George Kopp, who had invested $100,000 to start a brokerage in the early 00's. In 2005 Rosenberg agreed to buy Kopp’s stake for $79,000, but his payments stopped at $8,500.
Rosenberg, 71, told investigators he had no role in the company’s day-to-day trading, the Sun Times reports.
Rosenberg is known for working with companies that end up having troubled backgrounds.
He was chairman of Lake Shore Asset Management Ltd., a hedge fund that was eventually shut down by federal regulators after being accused of hiding $30 million in losses from account holders, the Sun Times reports. Rosenberg was not charged in the case, but the company’s managing director, Philip Baker, is a fugitive after having been charged with directing the fraud.