Marc S. Dreier, 58, of Manhattan, and the former founding partner of the law firm that bears his name, was indicted yesterday on conspiracy and securities fraud and wire fraud charges in connection with the alleged sale of fraudulent promissory notes to hedge funds. The scheme, which reportedly cost investors some $400 million in losses, allegedly ran from 2004 to 2008, and promised returns of 8 to 12 percent on 2 year notes owed by real estate developers. Instead, prosecutors allege Dreier used the funds to pay earlier investors in a Ponzi-type scheme and to finance a lavish lifestyle. Drier allegedly fooled the due diligence of hedge funds by hiring impersonators to pose as representatives of the real estate developer, including its CEO. He is represented by noted New York-based defense attorney, Gerald L. Shargel, Esq. Held in jail on $20 million bail, Dreier faces up to 20 years in prison, plus fines and restitution, if convicted.Friday, January 30, 2009
Update: Marc Dreier Indicted On Conspiracy & Fraud Charges
Marc S. Dreier, 58, of Manhattan, and the former founding partner of the law firm that bears his name, was indicted yesterday on conspiracy and securities fraud and wire fraud charges in connection with the alleged sale of fraudulent promissory notes to hedge funds. The scheme, which reportedly cost investors some $400 million in losses, allegedly ran from 2004 to 2008, and promised returns of 8 to 12 percent on 2 year notes owed by real estate developers. Instead, prosecutors allege Dreier used the funds to pay earlier investors in a Ponzi-type scheme and to finance a lavish lifestyle. Drier allegedly fooled the due diligence of hedge funds by hiring impersonators to pose as representatives of the real estate developer, including its CEO. He is represented by noted New York-based defense attorney, Gerald L. Shargel, Esq. Held in jail on $20 million bail, Dreier faces up to 20 years in prison, plus fines and restitution, if convicted.
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