Monday, December 8, 2008

SEC Charges Law Firm Founder With $100+ Million Real Estate Investment Fraud

Marc S. Dreier, 58, of Manhattan, the founding partner of New York City-based law firm, Dreier LP, was charged by the Securities & Exchange Commission today with securities fraud and wire fraud in connection with a real estate investment scheme, according to prosecutors. The complaint alleges Dreier peddled phony promissory notes, including notes in a New York real estate company, to various hedge funds. It further alleges he provided investors with fake financial statements and audit reports to cover up the fraud. Hedge Fund investors purchased at least $113 million of the phony notes. Dreier is currently facing similar fraud charges from Canadian regulatory authorities. Dreier is currently being held in federal custody.

Read the story here, here and here.


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