Scott Rothstein's Ponzi scheme began in the early 2000s, when he started selling fake settlements to investors, promising them high returns and guaranteed payouts. However, the settlements were completely fabricated, and Rothstein used the money from new investors to pay off earlier investors, while keeping a significant portion for himself. The scheme continued to grow and expand over the years, with Rothstein using the money to fund a lavish lifestyle, including the purchase of luxury homes, cars, and jewelry. However, in 2009, the scheme began to unravel, and Rothstein was forced to flee the country to avoid arrest. He was eventually caught in Morocco and extradited back to the United States, where he was sentenced to 50 years in prison for his crimes.