Marc Stuart Dreier is a New York lawyer currently implicated in a massive investment fraud case. He is the sole equity partner of the law firm Dreier LLP. He was indicted for wire fraud and violations of the Securities Exchange Act of 1934 and Rule 10b-5 in the United States District Court for the Southern District of New York on December 4, 2008.[1]
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Early life and education
Dreier grew up on Long Island, the son of a refugee from Poland who owned movie theaters.
Dreier earned his Bachelor of Arts from Yale University in 1972 and his Juris Doctor from Harvard Law School in 1975. Prior to founding Dreier LLP, he was the head of the litigation department of Fulbright & Jaworski and previously a partner with Rosenman & Colin.
Dreier is divorced.
Dreier LLP
He founded his own firm in 1996 that now has offices in five cities. He promised lavish compensation and attracted the best and the brightest lawyers. The headquarters at 499 Park Avenue had $30 million to $40 million worth of art, including works by Picasso and a Warhol depiction of Jacqueline Kennedy Onassis.
Dreier controlled the finances of his law firm to an unusual degree, being the sole equity partner in the firm and handled all administrative functions. There was no executive committee and no partners meetings. All deals were structured so that only he knew all the specifics and had access to all accounts. Dreier convinced lawyers that such an arrangement was best by emphasizing that it would allow them to concentrate on law, while he worried about running the firm.
Dreier owned a waterfront home in the Hamptons, a Manhattan triplex and a place on Ocean Avenue in Santa Monica, Calif. He kept a Mercedes 500 in New York, an Aston Martin in California, and a 121-foot blue and white Heesen motor yacht with a Jacuzzi and a crew of 10 docked in Manhattan or St. Maarten. Associates said the boat, the Seascape, was the site of late-night parties where he was often joined by an attractive young crowd. He was considered a bon vivant who belonged to the Harmonie Club and took part in high profile charity events.
The fraud case
Dreier stands accused of swindling $380M USD from various hedge funds by selling worthless financial instruments. The United States Securities and Exchange Commission has also filed a separate civil suit against him for stealing funds from an escrow account belonging to one of the firm's bankruptcy clients.
Dreier may also be facing criminal charges in Canada for impersonating an in-house lawyer at the Ontario Teachers' Pension Plan in connection with a sale of financial instruments worth $44.7 million USD.[1] He was released on bail, only to be arrested again by U.S. authorities upon returning to New York.
Dreier is currently being held in a federal detention facility without bail.[2] The assets of Dreier LLP and its affiliates have been frozen by court order.[3]
Mark Pomerantz of the law firm Paul, Weiss, Rifkind, Wharton & Garrison is the court-appointed receiver for Dreier LLP. On December 16, Pomerantz filed for Chapter 11 bankruptcy on behalf of the firm, declaring that "no effective management" exists at the firm in the wake of Dreier's arrest.[4] Dreier was the sole equity partner of the firm. The firm owes malpractice insurance carrier Chubb Group of Insurance Companies more than $213,000 in unpaid bills by December 31, 2008, otherwise the $10 million insurance policy would expire and leave Dreier's 240 or so lawyers without coverage. All of the firm's lawyers are currently looking for work.
References
- ^ a b Copy of the indictment against Dreier
- ^ Glovin, David (2008-12-11). "Dreier, ‘Enormous Risk of Flight,’ to Be Held in Jail (Update4)" (in English), Bloomberg News, Bloomberg L.P.. Retrieved on 13 December 2008.
- ^ Hamblett, Mark (2008-12-11). "Dreier Lawyers Describe Depleted Accounts, Departures From Firm" (in English), New York Law Journal, American Lawyer Media. Retrieved on 13 December 2008.
- ^ Hamblett, Mark; Noeleen G. Walder (2008-12-17). "Receiver Files Bankruptcy Petition for Dreier Firm" (in English), New York Law Journal, American Lawyer Media. Retrieved on 17 December 2008.
External links
- Biography of Dreier from his law firm, Dreier LLP
- Update on Dreier from AmLaw Daily
- Dreier, LLP Chapter 11 Bankruptcy Filing
- Dreier law firm in turmoil after founder's arrest
- Lawyer Seen as Bold Enough to Cheat the Best
Sheila M. Gowan selected as Dreier bankruptcy trustee
www.EmploymentCrossing.com The New York Law Journal reports that Sheila M. Gowan has been selected as the bankruptcy trustee in the Dreier case. Marc Dreier, founder and sole owner of the law firm Dreier LLP is alleged to have perpetrated a massive fraud against a group of hedge funds. Gowan is a former Proskauer associate and AUSA in the Southern District of New York and is now a partner at Diamond McCarthy, a litigation boutique. The New York Law Journal notes that Gowans hourly rate is $495 dollars. To find legal jobs near you, click here.
Author: employmentcrossing
Keywords: Sheila M. Gowan selected as Dreier bankruptcy trustee EmploymentCrossing.com Case Marc LLP Diamond McCarthy
Added: January 2, 2009
Update on the Dreier scandal
http://www.EmploymentCrossing.com When I got to work this morning, my boss told me I had to turn right back around and head to Santa Monica, where one of the southern California office of Dreier LLP is located. The firm's founder, Marc Dreier, was arrested over the weekend on charges related to theft and fraud. According to bloggers and the Wall Street Journal, employees are already jumping ship and the firm is set to go under. I headed back to Santa Monica to find out the truth. The Dreier offices are located in the Water Garden, a glitzy office complex surrounded by pools and fountains. With my professional attire, I had no problem getting in to the Dreier offices. I talked to a secretary, who wouldn't let me record. She wouldn't discuss the arrest, and she claimed that none of the lawyers had left the firm she acted like I was crazy even mentioning it. On my way out I was approached by several security guards, riding around in a golf cart. The demanded my camera and made me show them how to erase all my video. They claimed to be guarding the office because of the scandal, but I sure hadn't seen them on my way in. On my way back to the car with my now useless camera, I saw the guards perched among the trees surrounding the offices. I hope they had better luck keeping people out than they did with me. So I headed back to our Pasadena news bureau, and here I am. I'll keep you updated on the Dreier scandal as it develops.
Author: employmentcrossing
Keywords: Dreier Marc "LLP scandal law firm" santa monica arrest fraud theft canada layoffs employmentcrossing.com videos attorney
Added: December 9, 2008