Attorney Marc Dreier is Indicted in Alleged $400M Schemes
Indicted today by a federal grand jury in New York on securities fraud, wire fraud and conspiracy charges, attorney Marc Dreier apparently is hoping to strike a plea deal. Prosecutors contend he cost clients and sophisticated investors, respectively, more than $400 million by misappropriating trust money and selling fictitious promissory notes.
”It was not unexpected. There are no surprises,” his lawyer, Gerald Shargel, tells the Wall Street Journal. ”As I’ve said before, we’re looking for a fair and appropriate resolution of the matter.”
The indictment (PDF), to which the WSJ Law Blog provides a link, reiterates a number of previously reported allegations against Dreier discussed in earlier ABAJournal.com posts.
However, it also provides some new details. Among them, Dreier, in the process of arranging to impersonate representatives of the real companies he claimed were selling the fake notes, “obtained numerous cell phones, designated various phone lines at Dreier LLP, and set up various fake e-mail addresses,” so he could tell purchasers to contact individuals there, the indictment contends.
In addition to paying for his own lavish lifestyle, the proceeds he obtained from selling the notes went to “fund the operations of his law firm, pay interest and principal to previous purchasers of the notes, and pay his co-conspirators,” the indictment continues.
His alleged “known and unknown” co-conspirators aren’t named.
Overt acts alleged concerning the claimed schemes date back as far as 2004, but the bulk of the the accusations made against Dreier concern conduct in 2008.
In a forfeiture allegation, the indictment seeks to obtain listed property it says is worth at least $400 million, including real estate, art and vehicles, or other property of equivalent value.
Updated at 1:10 p.m. on Jan. 30 to insert missing phrase from indictment quotation.
