Ex-Broker Pleads Not Guilty In Dreier Fraud Case

Ex-Broker Pleads Not Guilty In Dreier Fraud Case - 4/22/2009

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright © 2001
Stanford Law School

2009 News and Press Releases

SEARCH

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

HEADLINE NEWS:

Ex-Broker Pleads Not Guilty In Dreier Fraud Case
Tina Peng

Securities Law 360. April 22, 2009
_________________________________________________________________________

EXCERPT: Former stockbroker Kosta Kovachev reportedly pled not guilty on Wednesday to charges of conspiring with prominent New York attorney Marc Dreier in an alleged scheme to defraud hedge funds of over $100 million. Kovachev, 57, pled not guilty to conspiracy to commit securities fraud or wire fraud, wire fraud and securities fraud before U.S. Magistrate Judge Andrew Peck in the U.S. District Court for the Southern District of New York, according to the reports. The conspiracy charge carries a maximum sentence of 5 years in prison, and the fraud charges carry maximum sentences of 20 years in prison, according to a statement from the U.S. Attorney's Office for the Southern District of New York. Kovachev agreed at the hearing to waive case review by a grand jury in support of an indictment, Dow Jones reported. Assistant U.S. Attorney Jonathan Streeter said at the hearing that the parties were discussing a possible disposition, according to Dow Jones. Kovachev was charged in December with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 5 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense, according to a statement issued by the U.S. Department of Justice. Dreier, the founder and sole equity partner of New York law firm Dreier LLP, sold to an unnamed hedge fund various promissory notes purportedly issued by a real estate company with a face value of approximately $115 million, according to the DOJ's complaint in the case. In September 2008, after the notes were not repaid on time, an employee of the hedge fund asked to meet with representatives of the developer at the developer's offices, according to the complaint.

Back to News page | Back to Archived News 2009 page | Back to Top

�