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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR