Dreier, Government Action, Hot News, Legal Industry, News, Scammers, Wall Street

Dreier Pleads Guilty, Stays in Apartment

Lawyer Marc Dreier, former head of then 250-lawyer firm Dreier LLP, has pleaded guilty to all 8 counts of money laundering, securities fraud and other stuff which were brought against him. He will be sentenced July 13. His lawyer Gerald Shargel says there is no deal in place but that Dreier has cooperated in helping find assets and such.

While he awaits sentencing, his $50,000 a month security guards (he and friends are paying for it) will continue to watch him at his NY apartment. According to Bloomberg, he signed an agreement authorizing them to use lethal force if he tries to escape.

In a prepared statement, Dreier admitted to the scheme. Bloomberg quoted him as saying, “I engineered a scheme to issue and sell fictitious promissory notes purportedly issued by companies in the United States and Canada.” He has now admitted to essentially bilking a bunch of hedge funds out of about $400 million. Where was the due diligence guys??

Judge Jed Rakoff said that Dreier “has disgraced the honorable profession of law.” Keep an eye on civil cases that might be brought against Dreier and/or his cohorts by accounting firm Berdon LLP (he allegedly forged financial statements with their name on it) and all the various creditors of the law firm in its current bankruptcy. Sheesh.