Attorney Marc Dreier Pleads Guilty; Will He Go to Jail Prior to Sentencing?
Once a high-flying partner at the helm of a 250-attorney New York law firm, Marc Dreier pleaded guilty today in federal court in Manhattan to a fraud scheme for which authorities are seeking $700 million in restitution.
Dreier, who was arrested in December for allegedly bilking sophisticated investors out of hundreds of millions of dollars through the sale of fraudulent notes, admitted he is guilty of securities fraud, conspiracy, wire fraud and money laundering, reports Reuters. Dreier’s 59th birthday is tomorrow.
“I understand that everything I was doing was illegal,” the Harvard Law School graduate told U.S. District Judge Jed Rakoff.
When he is sentenced, Dreier could get up to 20 years on some of the counts to which he has pleaded guilty, reports Reuters. The Associated Press says he is likely to be sentenced to 30 years to life.
At last report, Rakoff was still deciding whether Dreier could remain under house arrest until his scheduled sentencing in July.
Authorities say Dreier made $670 million from selling fictitious securities between 2004 and 2008, the AP reports.
Accused of selling fake promissory notes to at least 13 investment funds and four individuals, Dreier pitched the fake notes to guests at parties he hosted, prosecutor Jonathan Streeter said at today’s hearing. Dreier also allegedly asked lawyers he knew in New York to solicit their clients to invest, reports Dow Jones Newswires.
Updated at 6 p.m. to include information from Dow Jones.
