$100M In Dreier Assets Found, But Most Spent

$100M In Dreier Assets Found, But Most Spent - 3/26/2009

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2009 News and Press Releases

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News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

$100M In Dreier Assets Found, But Most Spent
Anne Urda

Securities Law 360. March 26, 2009
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EXCERPT: The court-appointed receiver overseeing the Marc Dreier fraud case has been able to recover about $100 million in assets from the accused swindler, but the New York attorney appears to have squandered the bulk of the money he allegedly earned from his fraudulent scheme on artwork, yachts and other luxury items. A report filed by receiver Mark Pomerantz in February was made public Wednesday, showing that he had been able to secure some of the proceeds allegedly derived from the sale of false promissory notes after a painstaking process. “The receiver's efforts have resulted in the safeguarding of more than $100 million in assets,” the report said. In the report, Pomerantz detailed his search through various Dreier bank accounts for available assets, unearthing evidence of lavish spending. Dreier shelled out approximately $39 million for artwork, keeping the most valuable pieces at his home rather than the law firm, Pomerantz noted. “The commingling of Dreier's personal and business finances, and the overlap of his licit and illicit dealings, makes it difficult to identify the particular source of funds used for the purchase of any particular work of art,” he said. “It is clear, however, that Dreier used enormous amounts of stolen funds to purchase a considerable collection of paintings, photographs, prints and sculptures.” In addition to the artwork, Pomerantz also identified assets in Dreier's properties in Manhattan and the Hamptons, which have subsequently been seized and are subject to the forfeiture allegations, he said. Dreier spent more than $18.3 million in fake note proceeds on a luxury yacht that also has been confiscated, Pomerantz said. The lawyer's fleet of luxury automobiles, including an Aston Martin, has already been returned to avoid further payments or made available to the U.S. Marshal's Office, which now controls the bulk of the seized assets, he said.

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