LawFuel – Legal Newswire – 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,
was indicted today on charges stemming from an alleged fraud
against various investment funds and misappropriation of law firm
client funds involving losses of more than $400 million.
According to the Indictment returned today in Manhattan federal
court:
DREIER was the founder and managing partner of Dreier
LLP, a law firm of 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 various note-sale schemes DREIER, among other
things, supplied purchasers or 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. 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.
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.
The Indictment filed today charges DREIER with one
count of conspiracy to commit securities and wire fraud; one
count of securities fraud; and five counts of wire fraud. The
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 Indictment.
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.
DREIER, 58, who resides in New York, New York, has been
detained since his arrest in this matter on December 7, 2008.
The case has been assigned to United States District Judge JED S.
RAKOFF.
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 RAYMOND J. LOHIER,
JONATHAN R. STREETER, and SHARON COHEN LEVIN are in charge of the
prosecution.
The charges and allegations contained in the Indictment
are merely accusations and the defendant is presumed innocent
unless and until proven guilty.
09-014 ###
