Wednesday, December 17, 2008
Prominent NY Attorney Indicted
Marc Dreier, 58, New York, NY, the Managing Partner of New York law firm Dreier LLP, was arrested on charges stemming from a $100 million fraud against various hedge funds. The criminal Complaint 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. However, the Developer’s CEO has advised, among other things, that the Developer did not issue any of the notes described; that his signature on certain of the purported promissory notes was a forgery; and that he did not participate in a conference call with the New York hedge fund.
On December 2, 2008, Dreier was arrested in Toronto, Canada, by the Toronto City Police for impersonating an employee of a Canadian entity in connection with the sale to a third hedge fund of notes with a face value of over $40 million. Criminal Investigators of the United States Attorney’s Office arrested Dreier on the U.S. charges at LaGuardia Airport when he returned to New York. Dreier is expected to be presented before a United States Magistrate Judge in the Southern District of New York.
The Complaint unsealed charges Dreier with one count of securities fraud and one count of wire fraud. The securities fraud count carries a maximum sentence of 20 years in prison and a fine of $5 million. The wire fraud count carries a maximum sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense.
Lev L. Dassin, the Acting United States Attorney for the Southern District of New York praised the work of the Criminal Investigators of United States Attorney’s Office and thanked the United States Securities and Exchange Commission for its assistance in the case.
“Marc Drier allegedly used his law license and his access to institutional investors to perpetrate a brazen fraud,” said US Attorney Dassin. Mr. Dassin added that the investigation is continuing.
Assistant United States Attorneys Raymond J. Lohier, Jonathan R. Streeter, and Anna E. Arreola are in charge of the prosecution. The charges and allegations contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
mortgage fraud
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
Some Sources require Registration.
Mortgage Fraud Risk Index Jumps 11 Percent, According to Verisk Analytics Subsidiary Interthinx
CNNMoney.com
The report...indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter...
Mortgage Fraud Case Appears Headed to Jury in Jackson County Circuit Court
The Jackson Citizen Patriot - MLive.com
The prosecution and defense rested Thursday in the mortgage fraud cases against Teresa Marie WIlson and Angelo Surveo Williams.
Wyoming Woman Charged with Mortgage Fraud After Allegedly Stealing Sister's Identity
MLive.com
A Wyoming woman is facing felony charges accusing her of stealing her sister's identity to obtain a mortgage...then defaulting on that mortgage, leaving taxpayers on the hook.
U.S. Attorney Targets White-Collar Crime
Wall Street Journal
In San Francisco, Mr. Russoniello said he is trying to crack down on cases like mortgage fraud, though he doesn't have the budget to hire additional white-collar prosecutors.
Arrests Made in Orlando Mortgage Fraud Roundup
MyFoxOrlando.com
During the real estate boom two years ago, some units were going for a half million dollars. Now some are short selling for just 50 grand.
10 Accused of Mortgage Fraud at PR Coastal Resort
Forbes
A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico...
Strodtman Jury Selected in Mortgage Fraud Trial
Greeley Tribune
Attorneys will deliver opening statements this morning in the trial of Mark Strodtman, who is accused of bilking homeowners in a mortgage scheme years ago.
FHA Digging Out After Loans Sour
Wall Street Journal
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration...
Mortgage Fraud Probe Nets 105 Across State
Bradenton Herald
At least one local man is among 105 people arrested across the state following a nine-month investigation into organized mortgage fraud.
Mortgage Fraud Increases
MortgageRates.co.nz
The number of frauds involving professional advisors, such as accountants and lawyers, has increased from two to four since March 2008.
Previous Articles
|
Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
|
|
|
|
|
|
|
|
|
|
|
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
