Dreier Held In ‘Inhuman’ Solitary Confinement, Lawyer Says

Dec 15 2008 | 1:04am ET

The New York lawyer accused of defrauding hedge funds of hundreds of millions of dollars has been held in “inhuman” conditions since his arrest last week, his lawyer claims.

At a hearing last week, Marc Dreier’s attorney said that his client is being held in solitary confinement until federal prison officials determine whether the Park Avenue lawyer is a gang member. Gerald Shargel said officials at the Manhattan Correction Center told him Dreier could be held in lockdown for another three weeks, held in his cell for 24 hours a day without telephone calls, visitors, or reading materials.

“How ludicrous is that?” Shargel asked during Dreier’s bail hearing. “You could lose your mind in three weeks.” Dreier was ordered held by U.S. Magistrate Judge Douglas Eaton, who said Dreier was a flight risk.

Shargel asked the judge to order his client moved to the prison’s general population or to another facility. Eaton said he would look into the matter.

Dreier has been charged with ripping off hedge funds and other investors to the tune of $380 million. Dreier, who was also arrested in Canada earlier this month for impersonating another lawyer, is accused of selling millions of discount notes he claimed were issued by a prominent New York investor.

RELATED STORIES


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.