Craig Rothfeld

Craig Rothfeld
Born:	New York
Charges:	Grand larceny, Securities fraud, Tax fraud, Falsifying FINRA statements
Sentence:	1.5 to 4.5 years (served 18 months)
Facility:	Rikers Island, NYS DOCCS facilities
Status:	Released

Craig Rothfeld is an American prison consultant and former securities industry executive. He runs Inside Outside Ltd., a New York firm that prepares defendants for incarceration and advocates for them once they are inside. Rothfeld did the job from the other side first. He served roughly 18 months in New York State custody for financial crimes before he started advising other white-collar defendants.

Before his conviction, Rothfeld was Chief Executive Officer of WJB Capital Group Inc., a New York City institutional broker-dealer. In February 2014 the Manhattan District Attorney indicted him on grand larceny, securities fraud, tax fraud, and counts of falsifying Financial Industry Regulatory Authority (FINRA) financial statements. He pleaded guilty and was sentenced to 1.5 to 4.5 years in state prison. He came home in 2017 and founded Inside Outside Ltd. that June.

The firm represents high-profile clients. Reporting has tied Rothfeld to Harvey Weinstein, former Trump Organization CFO Allen Weisselberg, Luigi Mangione, NXIVM founder Keith Raniere, and the rapper Sheff G. Inside Outside is one of only about half a dozen prison consulting firms operating in the United States.

Background and Career

Rothfeld earned a Bachelor of Science in accounting from the University at Albany, SUNY, in 1993. He later completed a Master of Business Administration in finance and international business at the New York University Stern School of Business.

His career started in accounting at Arthur Andersen & Co. He moved into the securities industry from there. By 2008 he was CEO of WJB Capital Group, a New York City institutional broker-dealer. The firm looked healthy from the outside. It was not. WJB halted operations in January 2012 amid slower trading, a capital shortage, and interest rates as high as 25 percent on some of its debt. FINRA expelled the company in August 2012 for misstating its financial records. The regulator also barred Rothfeld from the securities industry for life.

After prison, Rothfeld went back to school in the field he now works in. He earned a Master of Arts in criminal justice and a post-graduate certification in criminal sentencing and sentencing advocacy from Arizona State University's Watts College of Public Service and Community Solutions.

Federal Case

The WJB prosecution was a state case, not a federal one. The Manhattan District Attorney's Office brought it in New York State Supreme Court.

Indictment

On February 6, 2014, the District Attorney announced the indictment of Rothfeld and two co-defendants. They were WJB co-founder Michael N. Romano and former Chief Financial Officer Gregory S. Maleski. All three were arraigned before Justice Larry Stephen. Prosecutors said the men had defrauded investors of more than $11 million to keep the failing broker-dealer alive.

Rothfeld faced 65 counts. They included first-degree grand larceny, securities fraud, tax fraud, and falsifying FINRA financial statements. Romano was charged with 40 counts. Maleski faced 59. The three pleaded not guilty at arraignment. Justice Stephen set bail at a $1 million bond or $500,000 cash for Rothfeld and Romano, and a $500,000 bond or $250,000 cash for Maleski.

The Scheme

The indictment described a plan to prop up a dying firm with investor money. Prosecutors said the men persuaded at least 15 clients, some of them friends and family, to roll over old loans and put in more cash while the firm's true financial condition stayed hidden. The defendants were accused of taking at least $7.1 million from the firm between 2008 and 2012.

Rothfeld and Maleski were charged with filing false reports to FINRA that overstated the firm's net capital so it could keep operating. Rothfeld and Romano were also charged with filing false New York State income tax returns that underreported their income by hundreds of thousands of dollars.

Prosecutors alleged Rothfeld used stolen funds for mortgage payments and improvements on his Manhattan apartment and a Hamptons home, plus private school tuition for his children. Both Rothfeld and Romano were accused of charging personal expenses to corporate American Express cards and paying those bills with company money.

District Attorney Cyrus Vance commented on the case at the time. "Another investment fraud has come to light, this time forcing more than 100 employees out of work," he said. "Manhattan is the center of the securities industry and my office will continue to aggressively prosecute those who steal from innocent investors."

Plea and Sentence

In July 2015, Rothfeld pleaded guilty. He admitted to financial crimes in exchange for a custodial sentence of 1.5 to 4.5 years in New York State prison. Romano also pleaded guilty. His admissions covered grand larceny, securities fraud, and tax crimes. Both men acknowledged stealing roughly $11 million from WJB investors.

District Attorney Vance noted that the victims included "employees of the defendants' own company, and even friends and family members." In December 2015, both Rothfeld and Romano received sentences of 1.5 to 4.5 years.

Time Served

Rothfeld's sentence opened with five weeks at Rikers Island, New York City's main jail complex. The state then moved him to a New York State Department of Corrections and Community Supervision (NYS DOCCS) facility. He served 18 months across several state prisons. He left on a work-release program and finished with a year of parole.

His lawyer gave him a piece of advice early on. Learn the system. Rothfeld did. He read the department's rules and regulations, worked through law school studies, used LexisNexis, and interviewed other inmates about how the place actually ran. He carried three notebooks of research out of prison. Those notebooks became the spine of his consulting business. The most useful source, he has said, was the other men inside. They knew the unwritten rules.

Prison Consulting / Inside Outside Ltd.

Rothfeld founded Inside Outside Ltd. in June 2017, soon after his release. The firm is based in New York. It helps clients and their families work through several systems: the New York City Department of Correction at Rikers Island, NYS DOCCS, the Federal Bureau of Prisons, and other state systems.

The work runs from indictment through sentencing and into the prison term itself. Inside Outside prepares defendants for what confinement is like, recommends facilities, and advocates on conditions once a client is inside.

Clients

Several of the firm's clients have drawn national coverage.

Harvey Weinstein: Rothfeld began working with the former film producer before his February 2020 conviction on sexual assault charges. He handled corrections and healthcare matters and worked with Weinstein's legal team on a sentencing memorandum. Weinstein's attorney Jennifer Bonjean has described what consultants do in that role, saying they help "resolve a medical concern, assist with a disciplinary issue or to advocate for a placement in a facility." In September 2024, Rothfeld arranged for Weinstein to leave Rikers Island for Bellevue Hospital, where he had emergency heart surgery.

Allen Weisselberg: Rothfeld worked with the former Trump Organization CFO before Weisselberg's January 2023 incarceration at Rikers Island for perjury. Rothfeld's advice was practical. Stay out of the courtyards because of the risk of violence. Do not insert yourself into other inmates' conversations. "The goal is to keep to yourself," he said.

Luigi Mangione: Mangione retained Rothfeld after his December 2024 arrest on charges of killing UnitedHealthcare CEO Brian Thompson. Mangione is held at the Metropolitan Detention Center in Brooklyn while he awaits trial on state and federal charges.

Keith Raniere: Rothfeld worked with the NXIVM founder, who is serving 120 years in federal prison on sex trafficking and related charges. Rothfeld's effort focused on getting Raniere out of solitary confinement. Raniere had spent 280 days in a Special Housing Unit after an alleged 2022 assault by another inmate. Rothfeld called the conditions a human rights violation and described "feces on the floor and the walls."

Sheff G: The rapper hired Rothfeld after pleading guilty to attempted murder charges.

Other Work

Inside Outside lists a range of legal-system activity beyond direct consulting. By the firm's account, Rothfeld teaches Continuing Legal Education classes for New York bar associations, including the Brooklyn Bar Association, the Kings County Bar Association, the New York City Bar Association, and the New York State Association of Criminal Defense Lawyers. The firm states that he is an approved mitigation specialist under New York's 18-B assigned counsel program and that he has served as an expert witness in a dual-jurisdiction death penalty case.

The firm also describes legislative work. It states that Rothfeld lobbied for the Less Is More Act, a New York parole reform measure signed into law in 2021. Inside Outside says he assists defense attorneys in the pre-trial phase as a forensic research analyst and financial consultant.

Stated Approach

Rothfeld has spoken about his own record and how it shapes the work. He has said he made "some horrible choices and horrible decisions," takes "full responsibility," and is "incredibly remorseful for what happened," citing the harm to his family, his employees, and his investors.

He frames the prison environment as a leveler. "Everyone is an equal in prison," he has said. "It doesn't matter where you come from, what your crime of conviction is, how old you are or how intelligent you are. You're all equals." On the advocacy side, he describes it in rights terms: "I'm advocating for their human rights."

Terminology

• NYS DOCCS: The New York State Department of Corrections and Community Supervision, which runs the state prison system and supervises people on parole.

• NYC DOC: The New York City Department of Correction, which runs Rikers Island and other city jails for people awaiting trial or serving sentences of a year or less.

• FINRA: The Financial Industry Regulatory Authority, a non-governmental body that regulates member brokerage firms and exchange markets in the United States.

• 18-B Panel: A panel of private attorneys assigned to represent indigent defendants in New York criminal cases, named for Article 18-B of the New York County Law.

• Special Housing Unit (SHU): A segregated housing area used to separate certain inmates from the general population, often for discipline or protective custody.

• Mitigation Specialist: A professional who gathers a defendant's background and life history for the defense to present at sentencing in support of a reduced sentence.

See also

• Prison Consultants

Frequently Asked Questions

Q: Who is Craig Rothfeld?

Craig Rothfeld is a prison consultant and former WJB Capital CEO who served 18 months in New York State prison for financial crimes. He founded Inside Outside Ltd. and has worked with high-profile clients including Harvey Weinstein, Allen Weisselberg, Luigi Mangione, and Keith Raniere.

Q: What was Craig Rothfeld convicted of?

Rothfeld pleaded guilty to financial crimes tied to his role at WJB Capital Group. The Manhattan District Attorney had indicted him on 65 counts, including first-degree grand larceny, securities fraud, tax fraud, and falsifying FINRA statements. He and his co-defendants admitted to stealing roughly $11 million from investors.

Q: How long was Craig Rothfeld's sentence?

In December 2015, Rothfeld was sentenced to 1.5 to 4.5 years in New York State prison after pleading guilty in July 2015. He served 18 months and was released in 2017 on a work-release program followed by a year of parole.

Q: Where did Craig Rothfeld serve his sentence?

Rothfeld spent five weeks at Rikers Island before being transferred to New York State Department of Corrections and Community Supervision facilities, where he served the balance of his 18 months.

Q: What is Inside Outside Ltd?

Inside Outside Ltd. is Craig Rothfeld's prison consulting firm, founded in June 2017. It helps clients and families navigate the New York City Department of Correction, NYS DOCCS, the Federal Bureau of Prisons, and other state systems.