Marc Dreier Pleads Guilty to Fraud

admin —  May 12, 2009 — 1 Comment

Marc Dreier, 58, New York, New York, the former managing partner of the New York law firm Dreier LLP, has pled guilty to all eight counts contained in the superseding Indictment previously filed against him in Manhattan federal court. According to the superseding Indictment:

Dreier was the founder and managing partner of Dreier LLP, a law firm that, along with its affiliates, employed more than 250 attorneys with its principal office in New York City and additional offices in Los Angeles and elsewhere in the country.

From approximately 2004 through December 2008, Dreier conspired to engage in securities and wire fraud involving: (a) the sale of fake notes purportedly issued by a New York real estate developer; (b) the sale of fake notes purportedly issued by a Canadian pension plan and guaranteed by another Canadian company; (c) the sale of fake notes purportedly issued by the same Canadian company and guaranteed by the same Canadian pension plan; and (d) the embezzlement of Dreier LLP client funds. In furtherance of the note-sale scheme Dreier, among other things, supplied purchasers and prospective purchasers with false documentation, including false financial statements, assignments and guarantees. In addition, Dreier also impersonated, or arranged for others to impersonate, representatives of the purported issuers and sellers in telephone conversations, e-mail exchanges and meetings, and to this end even gained unauthorized entry into the premises of the New York developer and the Canadian pension plan. In order to carry out the fraud, Dreier directed his victims to wire funds into a Dreier LLP  attorney trust account, from which he later disbursed the funds both to reap the benefits of the fraud and to promote its continued operation. Dreier also misappropriated funds from clients of Dreier LLP including, for example, money in an escrow account and funds obtained in the settlement of a client lawsuit. During the course of the scheme, Dreier collected more than $700 million through the sale of fictitious promissory notes, a portion of the principal and interest of which he paid. The total out-of-pocket losses suffered by purchasers of the various fake notes and by law firm clients whose funds were misappropriated exceed $400 million.

Dreier pleaded guilty today to one count of conspiracy to commit securities and wire fraud; one count of securities fraud; five counts of wire fraud; and one count of money laundering based on financial transactions he undertook using proceeds of the securities and wire frauds, to promote the frauds. The superseding Indictment also seeks forfeiture of the proceeds of the fraud offenses and property derived therefrom, including real estate, a yacht, and a number of works of art specified in the superseding Indictment.

There is no plea agreement between the Government and Dreier.

The conspiracy count carries a maximum sentence of 5 years in prison and a maximum fine of the greater of $250,000 or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a fine of $5 million. Each 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. The money laundering count carries a maximum sentence of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the money laundering. Dreier faces a total maximum term of imprisonment of 145 years on all eight counts of the superseding Indictment.

Dreier is scheduled to be sentenced by United States District Judge Jed S. Rakoff at 5 p.m. on July 13, 2009.

Lev L. Dassin, the Acting United States Attorney for the Southern District of New York, made the announcement.  Mr. Dassin praised the work of the Criminal Investigators of the United States Attorney’s Office and thanked the United States Securities and Exchange Commission for its assistance in the case.

Assistant United States Attorneys Jonathan R. Streeter, Sharon Cohen Levin, and Anna Arreola are in charge of the prosecution.

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One response to Marc Dreier Pleads Guilty to Fraud

  1. Eliot Bernstein May 12, 2009 at 12:53 pm

    MADOFF + STANFORD + DREIER + SATYAM + FISERV + ALBERT HU = PROSKAUER ROSE & FOLEY & LARDNER
    Foley & Lardner partner Patricia J. (Trish) Lane represented FISERV, sue Foley, read on.
    Investors who have been burned in these scams should start to seek redress from the lawyers who were involved with these scams. I personally have been trying to notify regulators and authorities of a ONE TRILLION DOLLAR scam that is putting states like New York and Florida at huge risk, as well as, companies like Intel, Lockheed, SGI and IBM. The states and companies involved in the fraud fail to acknowledge the risk exposing shareholders and citizens to impending liabilities. Investigators, courts and federal agents ignoring the crimes and evidence, including a car-bombing attempt on my life. I know how Harry Markopolos felt trying to expose Madoff in a world without regulation.
    Did I hear Proskauer Rose is involved in Madoff (involved many clients too) and acted as Allen Stanford’s attorney. Investors who lost money in these scams should start looking at the law firm Proskauer’s assets for recovery. First, Proskauer partner Gregg Mashberg claims Madoff is a financial 9/11 for their clients, if they directed you to Madoff sue them. Then, Proskauer partner Thomas Sjoblom former enforcement dude for SEC and Allen Stanford attorney, declares PARTY IS OVER to Stanford employees and advises them to PRAY, this two days before SEC hearings. Then at hearings, he lies with Holt to SEC saying she only prepared with him but fails to mention Miami meeting at airport hanger. Then Sjoblom resigns after SEC begins investigation and sends note to SEC disaffirming all statements made by him and Proskauer, his butt on fire. If you were burned in Stanford sue Proskauer.
    Proskauer Rose and Foley & Lardner are also in a TRILLION dollar FEDERAL LAWSUIT legally related to a WHISTLEBLOWER CASE also in FEDERAL COURT. Marc S. Dreier, brought in through Raymond A. Joao of Meltzer Lippe after putting 90+ patents of mine in his own name, is also a defendant in the Federal Case.
    The Trillion Dollar suit according to Judge Shira Scheindlin is one of PATENT THEFT, MURDER & A CAR BOMBING. For graphics on the car bombing visit http://www.iviewit.tv.
    The Federal Court cases
    United States Court of Appeals for the Second Circuit Docket 08-4873-cv – Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al. – TRILLION DOLLAR LAWSUIT
    Cases @ US District Court – Southern District NY
    (07cv09599) Anderson v The State of New York, et al. – WHISTLEBLOWER LAWSUIT
    (07cv11196) Bernstein, et al. v Appellate Division First Department Disciplinary Committee, et al.
    (07cv11612) Esposito v The State of New York, et al.,
    (08cv00526) Capogrosso v New York State Commission on Judicial Conduct, et al.,
    (08cv02391) McKeown v The State of New York, et al.,
    (08cv02852) Galison v The State of New York, et al.,
    (08cv03305) Carvel v The State of New York, et al., and,
    (08cv4053) Gizella Weisshaus v The State of New York, et al.
    (08cv4438) Suzanne McCormick v The State of New York, et al.
    ( ) John L. Petrec-Tolino v. The State of New York

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