'Disgraced' lawyer admits $400 million hedge fund fraud
NEW YORK - Manhattan lawyer Marc Dreier has pleaded guilty to using fake documents to defraud hedge funds to the tune of $400 million. There was no plea deal with prosecutors, meaning he now faces up to 145 years in prison without the expectation of leniency. Recounting his crimes in court, Dreier admitted to cheating hedge funds, investment funds and individual investors between 2004 and 2008 by selling fictitious securities. Prosecutors say Dreier spent the stolen money on a lavish lifestyle, including $39 million in contemporary art, beachfront properties and a $18 million luxury yacht. The US government has already informed the court that federal sentencing guidelines call for a life sentence. US district judge Jed Rakoff said the crime "disgraced the honourable profession of law".
Dreier ran his own law firm, Dreier LLP, which employed 250 lawyers and had a book of clients including celebrities such as retired US footballer Michael Strahan and former News Corporation publishing executive Judith Regan. He now faces charges of conspiracy to commit securities and wire fraud, and money laundering. Judge Rakoff waved off objections by prosecutors to set Dreier's bail at $10 million until sentencing on July 13.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Risk, portfolio margin, regulation: regtech to the rescue
A white paper outlining the complexity of setting the course for risk, margin and regulation
Prop shops recoil from EU’s ‘ill-fitting’ capital regime
Large proprietary trading firms complain they are subject to hand-me-down rules originally designed for banks
Revealed: the three EU banks applying for IMA approval
BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB
FCA presses UK non-banks to put their affairs in order
Greater scrutiny of wind-down plans by regulator could alter capital and liquidity requirements
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Saudi Arabia poised to become clean netting jurisdiction
Isda AGM: Netting regulation awaiting final approvals from regulators
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
CFTC chair backs easing of G-Sib surcharge in Basel endgame
Isda AGM: Fed’s proposed surcharge changes could hike client clearing cost by 80%
Most read
- Industry urges focus on initial margin instead of intraday VM
- For a growing number of banks, synthetics are the real deal
- Did Fed’s stress capital buffer blunt CCAR?