Dreier Officially Indicted, New Charges Added

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.


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

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Versum Materials (VSM), with a market capitalization of $2.7 billion, enables chipmakers to achieve higher performance at lower cost with enhanced reliability. Versum is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets.