Sunday, 2 August 2015
Last updated 1 day ago
Jan 30 2009 | 4:04am ET
Federal prosecutors have added to the bill of misdeeds allegedly perpetrated by Marc Dreier, the prominent New York lawyer accused of defrauding hedge funds and other investors of more than $400 million.
A new, seven-count indictment was made public yesterday in Manhattan federal court. Dreier is now charged with embezzling client funds and selling fake promissory notes he claimed were issued by a Canadian pension plan, in addition to the initial charges, which alleged he sold phony notes purportedly issued by New York developer Sheldon Solow to a pair of hedge funds.
The indictment also offered new details of the alleged scam, saying it dates back to 2004. Dreier is accused of giving the buyers of the notes bogus financial statements, and that he along with others impersonated various officials as part of the scam. One of this fellow alleged actors, former broker Kosta Kovachev, was charged last month with impersonating the controller of a real estate firm.
Dreier has not yet formally entered a plea to the charges, but said in court paper filed Jan. 15 that he did not steal any money from the failed investments, but used them to repay hedge funds, cover expenses at his Park Avenue law firm and buy property.
Dreier was arrested last month in Toronto, where he faces charges of impersonating a lawyer for the Ontario Teachers’ Pension Plan at a meeting with Fortress Investment Group. He was arrested again up his return to the U.S., and remains in jail, unable to post a $20 million bond.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…