Hedge Fund Gets Dreier's Art Collection

Aug 14 2013 | 9:18am ET

A New York hedge fund is the proud new owner of an impressive art collection—one that belonged to disgraced lawyer and fraudster Marc Dreier.

Heathfield Capital, which U.S. District Judge Jed Rakoff called "the last and largest victim of Dreier's fraud," received 18 works of art, pledged as collateral by Dreier, from the U.S. Marshals Service, the Manhattan U.S. Attorney's Office said. The pieces, by Damien Hirst, Mark Rothko, Andy Warhol and others, are worth a combined $33 million.

Rakoff approved the transfer last month.

Dreier pleaded guilty in 2009 to defrauding hedge funds of more than $400 million, admitting that he sold more than 85 fake promissory notes he claimed were issued by a prominent New York developer. At least 13 hedge funds fell for the ruse, including boldface names like Elliott Management, Eton Park Capital, Fortress Investment Group and GSO Capital Partners. Dreier was sentenced to 20 years in prison for his crimes.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note