Dreier To Throw Himself At Court's Mercy

Dreier To Throw Himself At Court's Mercy - 4/28/2009 , Class Action News, Class Action, Securities News, shareholder class action, claim, litigation, securities action, common stock'>

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Dreier To Throw Himself At Court's Mercy
Anne Urda

Securities Law 360. April 28, 2009
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EXCERPT: Marc S. Dreier is expected to plead guilty to the eight counts facing him, including securities and wire fraud, leaving his fate in the hands of a judge who must decide whether to throw the book at or show mercy to the tarnished New York attorney who allegedly defrauded investors of more than $100 million. On Monday, his attorney, Gerald Shargel, indicated to the U.S. District Court for the Southern District of New York that his client would be pleading guilty to all counts included in the indictment when he appears at the Manhattan court on May 11 to face the music regarding his purported financial shenanigans. Dreier stands accused of peddling fake promissory notes allegedly issued by a New York real estate developer and a Canadian pension plan from approximately 2004 to December 2008, according to court documents. 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 U.S. Department of Justice's complaint in the case. Prosecutors have also accused Dreier of misappropriating client funds, contributing to the $400 million total in out-of-pocket losses his victims purportedly incurred. “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,” the indictment said. Seven of the counts that he is facing, which include securities and wire fraud and money laundering, carry a maximum of 20 years in prison apiece, while the conspiracy charge carries a five-year maximum term.

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