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
Inside the Marc Dreier Scandal
More news videos at www.wsj.com/video. WSJ's Nathan Koppel looks at the fall of a major litigator now in jail and accused of selling bogus paper.
Author: WSJDigitalNetwork
Keywords: WSJ "Wall Street JOurnal" Dreier
Added: December 23, 2008
Marc Dreier Criminal Charges - Part 2
Marc Dreier, the owner of a prominent New York law firm who was arrested last week, was hit Monday with criminal charges and civil complaints alleging he defrauded investors of about $100 million by selling them phony financial instruments. Scott Drake talks with Roberta Ashkin with Ashkin in New York, Sara Steiner with the Steiner Group in New York and Richard Maltz with Frankfurt,Kurnit,Klein and Selz.
Author: LBNstudio
Keywords: dreier legal broadcast network civil criminal defraud investors "promisory notes" "financial instruments" ashkin maltz "sara steiner" "$100 million" "new york" LBN
Added: December 16, 2008
Marc Dreier Criminal Charges - Part 1
Marc Dreier, the owner of a prominent New York law firm who was arrested last week, was hit Monday with criminal charges and civil complaints alleging he defrauded investors of about $100 million by selling them phony financial instruments. Scott Drake talks with Roberta Ashkin with Ashkin in New York, Sara Steiner with the Steiner Group in New York and Richard Maltz with Frankfurt,Kurnit,Klein and Selz.
Author: LBNstudio
Keywords: dreier legal broadcast network civil criminal defraud investors "promisory notes" "financial instruments" ashkin maltz "sara steiner" "$100 million" "new york" LBN
Added: December 16, 2008
George W. Bush's Nightmare Before Christmas
http://santabush.com The Bush administration isn't about to let democracy or the will of the people stop them from further ruining this country before they leave office. Knowing he can't get his long list of favors to his Republican cronies through Congress, Bush is doing a last minute end-run, jamming as many rules through the executive branch as he can during his waning days in power. These so-called "midnight regulations" will allow factories to pollute more, further restrict women's access to abortion services, cut off aid to needy families in the middle of a recession, and much more -- all without Congress' oversight or approval. It's wrong, it's antidemocratic, but, sadly, it's legal. When given the opportunity to be "naughty or nice" this holiday season, Bush has clearly opted to go down as one of the naughtiest, most sinister presidents in our nation's history. We've created a satirical spin on the famous poem, 'Twas the Night Before Christmas, in order to show President Bush crafting his last-minute agenda for health care, the environment, civil liberties, and labor practices -- rules that will affect everyone and will be difficult for the next administration to overturn. We are using humor here in the hopes that it both commands people's attention and enables us to shine a light on these all-too-serious midnight regulations. After you've enjoyed this video, send it to friends and family. Let them know the harm President Bush's midnight regulations will bring. And stress the fact that there are far too many congressional representatives who have remained silent while Bush pushes midnight regulations that will wreak havoc on the lives of their constituents and local communities. We must call the tacit approval of these representatives into question. Keep in mind that it's not just voters in blue states who will be affected -- these midnight regulations will hurt people in the states and districts of Bush's enablers in Congress. And remember that these last-minute policies are the outcome of Congressional Republicans' loyal support for the Bush agenda over the past eight years. We should hold them accountable for the huge lump of coal Bush is handing over to the nation this Christmas.
Author: bravenewfilms
Keywords: santa bush george president christmas holiday greeting regulations midnight environment labor corporations adomian impression
Added: December 15, 2008