Monday, July 13, 2009

Lawyer Marc Dreier sentenced to 20 years for $700 million fraud

Lawyer Gets 20 Years in $700 Million Fraud
July 13, 2009

Marc S. Dreier, once a high-flying New York lawyer who orchestrated an elaborate fraud scheme that bilked hedge funds and other investors of $700 million, was sentenced on Monday to 20 years in prison by a judge who rejected the government’s request for a much longer sentence.

...the judge, Jed S. Rakoff of Federal District Court... ...ordered that Mr. Dreier pay $388 million in restitution and forfeit $746 million in criminal proceeds.

In carrying out his scheme, Mr. Dreier ...created phony financial statements and accounting documents, and paid people to impersonate others to trick prospective investors into believing the notes were genuine.

Mr. Dreier’s case exploded into public view in December, when he was arrested in Toronto after trying to impersonate an employee of the Ontario Teachers’ Pension Plan in an attempt to sell a fake note for millions of dollars.

Prosecutors have also said that Mr. Dreier, 59, a graduate of Yale University and Harvard Law School, stole more than $46 million from his clients...

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