US v Marc Dreier

Criminal Complaint Against Marc Dreier


MARC DREIER, the Managing Partner of New York law firm Dreier LLP, was arrested late yesterday on charges stemming from a $100 million fraud against various hedge funds. The criminal Complaint unsealed today in Manhattan federal court alleges, in summary:

DREIER is the founder and managing partner of Dreier

LLP, a law firm of more than 250 attorneys with its principal office in New York City and additional offices in Los Angeles and elsewhere in the country. In early October 2008, DREIER told personnel at a Connecticut hedge fund that a New York City real estate development company (the "Developer") had a "note program" by which the Developer sold promissory notes to investors. DREIER stated that certain investors who had originally purchased such

notes wanted to sell them because they needed cash due to the recent financial crisis; that he represented both the selling investors and the Developer; and that the Connecticut hedge fund could purchase those notes at a significant discount. DREIER subsequently sent the hedge fund purported audited financial statements of the Developer and certain of its affiliates. In late October 2008 the hedge fund wired approximately $13.5 million to an account controlled by DREIER (the "Dreier Account") in payment for a $25 million dollar face value note purportedly

issued by the Developer.

DREIER also negotiated with another, New York-based

hedge fund in October 2008; that hedge fund too agreed to buy notes purportedly issued by the Developer and ultimately wired approximately $100 million to the Dreier Account in payment for the purported notes. During the course of the negotiations with the New York hedge fund, DREIER arranged a conference call with hedge fund personnel and an individual represented to be the Developer’s CEO.

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Reference Info:Federal, 2nd Circuit, New York | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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