Top-Line New York Lawyer In Court for Alleged Fraud

Stephen Harris

10 December 2008

Marc Dreier, founder in 1996 of the 250-lawyer Park Avenue firm that bears his name, is facing charges relating to what the Securities and Exchange Commission called a "stunning, brazen fraud that targeted some very sophisticated institutional investors", according to media reports. It asserts he sold fake debt to hedge fund managers looking for investment opportunities in the current crisis.

Mr Dreier has been charged with stealing $113 million since October 2008, including $100 million from two hedge funds, by meeting them in various offices in which he had no business to be.

The victims were also given false financial statements, audits and letters on the stationery of the New York property company that was supposedly issuing the debt.

Prosecutors believe he was attempting to steal another $33 million when he was arrested in Toronto and charged with pretending to be a Canadian pension lawyer in a meeting with a hedge fund.

Mr Dreier appeared in Manhattan Federal Court earlier this week but has yet to plea on the charges.

"This is a very complicated matter and the facts are beyond reach of a sound bite," said his lawyer.