Dreier Law Firm to File for Bankruptcy
A receiver for the Dreier law firm says it will soon file for bankruptcy, following an alleged massive fraud by its founder and sole equity partner, Marc Dreier.
“I have advised counsel for the SEC and counsel for Mr. Dreier of my intention to seek bankruptcy protection, and I believe that Mr. Dreier himself will file a personal petition for bankruptcy in the near future,” writes receiver Mark Pomerantz in a letter filed yesterday in federal district court in Manhattan, reports Bloomberg.
However, attorney Gerald Shargel, who is representing Marc Dreier, says his client is considering bankruptcy but hasn’t yet decided to pursue that option, the news agency writes.
As discussed in earlier ABAJournal.com posts, the law firm is behind on its bills and its malpractice coverage has lapsed, attorneys there discovered after Marc Dreier was accused earlier this month of stealing some $380 million from sophisticated investors by selling them fraudulent debt instruments.
Dreier is now facing criminal charges in federal court and Canada, a related civil action by the Securities and Exchange Commission and a lawsuit by Wachovia Corp. alleging that he has defaulted on more than $10 million in loans.
