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 who served 18 months in New York State prison for financial crimes. Rothfeld was the Chief Executive Officer of WJB Capital Group Inc., a New York City-based institutional broker-dealer, before being indicted by the Manhattan District Attorney in February 2014 on charges of grand larceny, securities fraud, tax fraud, and falsifying Financial Industry Regulatory Authority (FINRA) regulatory financial statements. Following his release in June 2017, Rothfeld founded Inside Outside Ltd., a prison consulting firm that has represented high-profile clients including Harvey Weinstein, Allen Weisselberg, Luigi Mangione, Keith Raniere, and rapper Sheff G.

Summary

Rothfeld worked at prominent financial institutions including Arthur Andersen & Co., Sotheby's, Conectiv, and WJB Capital Group Inc., where he rose to serve as Chief Executive Officer.

His criminal case stemmed from his role in a scheme to defraud investors and prop up the failing broker-dealer firm by misrepresenting its financial condition to regulators and stealing client funds for personal use. Rothfeld now operates one of approximately half a dozen prison consulting firms in the United States, providing advocacy, preparation, and support services to individuals facing incarceration in New York State correctional facilities, Rikers Island, and the Federal Bureau of Prisons.

Background

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

After beginning his career in accounting at Arthur Andersen & Co., Rothfeld transitioned to the securities industry and eventually became CEO of WJB Capital Group, a New York City-based institutional broker-dealer, in 2008. According to Rothfeld's own account, the firm appeared to thrive during his tenure, but its success was not what it seemed. WJB Capital halted operations in January 2012 amid slower trading, a shortage of capital, and interest rates of 25 percent on some debts. FINRA expelled the company in August 2012 for misstating financial records and permanently barred Rothfeld from working in the securities industry.

Following his release from prison, Rothfeld completed additional graduate education, earning 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 & Community Solutions.

Indictment and Prosecution

On February 6, 2014, the Manhattan District Attorney's Office announced that Rothfeld and two co-defendants—WJB Capital co-founder Michael N. Romano and former Chief Financial Officer Gregory S. Maleski—had been indicted and arraigned before New York State Supreme Court Justice Larry Stephen. The three men were charged with defrauding investors of more than $11 million in an effort to prop up the now-defunct broker-dealer.

Criminal Charges

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

Fraudulent Scheme

According to the Manhattan District Attorney's indictment, the three men convinced at least 15 clients—including friends and family members—to extend old loans and invest more money with the firm while misrepresenting WJB Capital's financial condition. The defendants were accused of embezzling at least $7.1 million from the firm from at least 2008 through 2012.

Rothfeld and Maleski were specifically charged with filing false reports to FINRA that overstated the firm's net capital position in order to remain in business. Rothfeld and Romano were also charged with filing false New York State income tax returns that underreported their incomes by hundreds of thousands of dollars.

Prosecutors alleged that Rothfeld used the stolen funds for mortgage payments and improvements on his Manhattan apartment and Hamptons home, as well as private school tuition for his children. Romano allegedly spent funds on mortgage payments, luxury cars, and trips to strip clubs, hotels, and country clubs. Both Rothfeld and Romano were accused of using corporate American Express cards for personal expenses and then using company funds to pay those charges.

Statement from District Attorney

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

Guilty Plea and Sentencing

In July 2015, Rothfeld pleaded guilty in a plea deal in which he admitted to committing various financial crimes in return for a custodial sentence of 1.5 to 4.5 years in New York State prison. Romano also pleaded guilty to various charges including grand larceny, securities fraud, and tax crimes. Both men admitted to stealing approximately $11 million from WJB investors.

In his plea, Rothfeld acknowledged his guilt and the harm caused. District Attorney Vance noted that victims included "employees of the defendants' own company, and even friends and family members."

In December 2015, both Rothfeld and Romano were sentenced to 1.5 to 4.5 years in prison.

Prison Experience

Rothfeld's sentence began with five weeks at Rikers Island, New York City's main jail complex, before he was transferred to a New York State Department of Corrections and Community Supervision (NYS DOCCS) facility. He served a total of 18 months in various New York State correctional facilities before being released on a work-release program, followed by a year of parole.

According to Rothfeld, his attorney advised him to learn as much as he could about the New York State correctional system while incarcerated. Rothfeld researched the department's rules and regulations extensively, read law school studies, accessed LexisNexis, and interviewed fellow inmates about their experiences. He took three notebooks into prison to document his research, which would later form the foundation of his consulting business.

Rothfeld has stated that "the greatest source of information" for his prison consultancy business was other inmates, from whom he learned the unwritten rules and practical realities of navigating the correctional system.

Post-Release Career

Soon after his release from prison in June 2017, Rothfeld founded Inside Outside Ltd., a prison consulting and advocacy services firm based in New York. The company specializes in helping individuals and their families navigate the New York City Department of Correction (Rikers Island), the New York State Department of Corrections and Community Supervision, the Federal Bureau of Prisons, and various other state correctional systems, though he is typically considered a specialist in New York state cases.

High-Profile Clients

Rothfeld's firm has gained national attention for representing several high-profile clients:

• Harvey Weinstein: Rothfeld began working with the former Hollywood producer prior to his conviction on sexual assault charges in February 2020, serving as Weinstein's representative for corrections and healthcare matters. Rothfeld worked on a sentencing memo with Weinstein's legal team and has continued to advocate for his conditions of confinement. Weinstein's attorney Jennifer Bonjean has stated that prison consultants are important advocates for people entering the system, helping to "resolve a medical concern, assist with a disciplinary issue or to advocate for a placement in a facility."

• Allen Weisselberg: Rothfeld worked with the former Trump Organization Chief Financial Officer prior to his incarceration at Rikers Island in January 2023 for perjury. The Trump Organization reportedly paid Rothfeld's fees. Rothfeld advised Weisselberg not to go outside at Rikers due to the risk of violence in courtyards and to avoid interjecting himself into conversations between other inmates, noting that "the goal is to keep to yourself."

• Luigi Mangione: Following his arrest in December 2024 on charges of murdering UnitedHealthcare CEO Brian Thompson, Mangione retained Rothfeld as his prison consultant. Mangione is being held at the Metropolitan Detention Center in Brooklyn awaiting trial on federal and state charges.

• Keith Raniere: Rothfeld worked with the NXIVM cult leader, who was sentenced to 120 years in federal prison in 2020 on sex trafficking and child pornography charges. Rothfeld's work focused on getting Raniere out of solitary confinement after he was allegedly assaulted by another inmate in 2022 and spent 280 days in the Special Housing Unit. Rothfeld described the conditions as a human rights violation, citing "feces on the floor and the walls."

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

Professional Activities

Rothfeld teaches Continuing Legal Education classes to various New York State bar associations including the Brooklyn Bar Association (BBA), Kings County Bar Association (KCBA), New York City Bar Association (NYCBA), and the New York State Association of Criminal Defense Lawyers (NYSACDL). He is an approved mitigation specialist under New York's 18-B assigned counsel program and has been retained as an expert witness on a dual-jurisdiction death penalty case.

Rothfeld is actively involved in New York State criminal justice legislation and reform efforts. He lobbied for the passage of the Less is More Act, a parole reform measure that was signed into law in 2021. He also assists defense attorneys in the pre-trial phase as a forensic research analyst and forensic financial consultant.

Rothfeld has appeared extensively in media coverage of his clients, including appearances on NBC News, Fox News, and various other outlets providing commentary on prison conditions and the correctional system.

Public Statements

Rothfeld has been candid about his criminal history and its role in his current career. Reflecting on his crimes, he has stated that he made "some horrible choices and horrible decisions" and takes "full responsibility" for his choices, accepts the consequences, and "is incredibly remorseful for what happened," expressing regret for the harm caused to his family, employees, and investors.

On his philosophy as a prison consultant, Rothfeld has stated: "Everyone is an equal in prison. 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."

Regarding his advocacy work, Rothfeld has emphasized the human rights dimension: "I'm advocating for their human rights."

Terminology

• NYS DOCCS: The New York State Department of Corrections and Community Supervision, which operates New York's state prison system and supervises individuals on parole and other forms of community supervision.

• NYC DOC: The New York City Department of Correction, which operates Rikers Island and other city jails housing individuals awaiting trial or serving sentences of one year or less.

• FINRA: The Financial Industry Regulatory Authority, a non-governmental organization 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 after Article 18-B of the New York County Law.

• Special Housing Unit (SHU): A segregated housing area in prisons used for inmates requiring separation from the general population, often for disciplinary reasons or protective custody.

• Mitigation Specialist: A professional who assists defense attorneys in gathering information about a defendant's background, life history, and circumstances to present to the court during sentencing to argue for a reduced sentence.

• Merit Time: A New York State program that allows certain inmates to earn a reduction in their minimum sentence by completing approved programs and maintaining good behavior.

• Good Time Credit (GTC): Time credited against a prisoner's sentence for good behavior during incarceration, reducing the actual time served.

• First Step Act Earned Time Credits (FTCs/ETCs): Credits earned by federal inmates for participating in evidence-based recidivism reduction programs under the First Step Act of 2018, which can result in earlier transfer to supervised release.

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. He founded Inside Outside Ltd. and has represented Harvey Weinstein, Allen Weisselberg, Luigi Mangione, and other high-profile clients.

Q: What services does Craig Rothfeld provide?

Rothfeld provides prison consulting services including preparation for incarceration, advocacy during confinement, facility recommendations, and guidance on prison policies for New York State, Rikers Island, and federal facilities.

Q: What was Craig Rothfeld convicted of?

Rothfeld was convicted of grand larceny, securities fraud, tax fraud, and falsifying FINRA statements for his role at WJB Capital Group. He and co-defendants defrauded investors of over $11 million.

Q: Where did Craig Rothfeld serve his sentence?

Rothfeld served 5 weeks at Rikers Island before being transferred to NYS DOCCS facilities, serving a total of 18 months before release on a work-release program.

Q: What is Inside Outside Ltd?

Inside Outside Ltd. is Craig Rothfeld's prison consulting firm founded in 2017, helping individuals navigate New York City DOC, NYS DOCCS, and the Federal Bureau of Prisons.