United States Attorney
Southern District of New York
FOR IMMEDIATE RELEASE CONTACT: U.S. ATTORNEY’S OFFICE
MAY 11, 2009 YUSILL SCRIBNER,
REBEKAH CARMICHAEL,
JANICE OH
PUBLIC INFORMATION OFFICE
(212) 637-2600
LawFuel.com –
LEV L. DASSIN, the Acting United States Attorney for
the Southern District of New York, announced that MARC DREIER,
the former managing partner of the New York law firm Dreier LLP,
pleaded guilty today to all eight counts contained in the
superseding Indictment previously filed against him in Manhattan
federal court. According to the superseding Indictment:
DREIER was the founder and managing partner of Dreier
LLP, a law firm that, along with its affiliates, employed more
than 250 attorneys with its principal office in New York City and
additional offices in Los Angeles and elsewhere in the country.
From approximately 2004 through December 2008, DREIER
conspired to engage in securities and wire fraud involving: (a)
the sale of fake notes purportedly issued by a New York real
estate developer; (b) the sale of fake notes purportedly issued
by a Canadian pension plan and guaranteed by another Canadian
company; (c) the sale of fake notes purportedly issued by the
same Canadian company and guaranteed by the same Canadian pension
plan; and (d) the embezzlement of Dreier LLP client funds.
In furtherance of the note-sale scheme DREIER, among other things,
supplied purchasers and prospective purchasers with false
documentation, including false financial statements, assignments
and guarantees. In addition, DREIER also impersonated, or
arranged for others to impersonate, representatives of the
purported issuers and sellers in telephone conversations, e-mail
exchanges and meetings, and to this end even gained unauthorized
entry into the premises of the New York developer and the
Canadian pension plan. In order to carry out the fraud, DREIER
directed his victims to wire funds into a Dreier LLP attorney
trust account, from which he later disbursed the funds both to
reap the benefits of the fraud and to promote its continued
operation. DREIER also misappropriated funds from clients of
Dreier LLP including, for example, money in an escrow account and
funds obtained in the settlement of a client lawsuit. During the
course of the scheme, DREIER collected more than $700 million
through the sale of fictitious promissory notes, a portion of the
principal and interest of which he paid. The total out-of-pocket
losses suffered by purchasers of the various fake notes and by
law firm clients whose funds were misappropriated exceed $400
million.
DREIER pleaded guilty today to one count of conspiracy
to commit securities and wire fraud; one count of securities
fraud; five counts of wire fraud; and one count of money
laundering based on financial transactions he undertook using
proceeds of the securities and wire frauds, to promote the
frauds. The superseding Indictment also seeks forfeiture of the
proceeds of the fraud offenses and property derived therefrom,
including real estate, a yacht, and a number of works of art
specified in the superseding Indictment.
There is no plea agreement between the Government and
DREIER.
The conspiracy count carries a maximum sentence of 5
years in prison and a maximum fine of the greater of $250,000 or
twice the gross gain or loss from the offense. The securities
fraud count carries a maximum sentence of 20 years in prison and
a fine of $5 million. Each wire fraud count carries a maximum
sentence of 20 years in prison and a fine of the greater of
$250,000 or twice the gross gain or loss from the offense. The
money laundering count carries a maximum sentence of 20 years in
prison and a fine of the greater of $500,000 or twice the value
of the property involved in the money laundering. DREIER faces a
total maximum term of imprisonment of 145 years on all eight
counts of the superseding Indictment.
DREIER, 58, resides in New York, New York. He is
scheduled to be sentenced by United States District Judge JED S.
RAKOFF at 5 p.m. on July 13, 2009.
Mr. DASSIN praised the work of the Criminal
Investigators of the United States Attorney’s Office and thanked
the United States Securities and Exchange Commission for its
assistance in the case.
Assistant United States Attorneys JONATHAN R. STREETER,
SHARON COHEN LEVIN, and ANNA ARREOLA are in charge of the
prosecution.
09-138 ###
