Legal News

DOJ Files Criminal Complaint Against Marc Dreier; Others Sue

By Ashby Jones

We sort of figured that this post wasn’t the last we’d do on Marc Dreier, but we didn’t realize we’d be hitting the story again so soon. The news:

The Criminal Charge: According to a release issued by the U.S. attorney’s office in New York and an accompanying criminal complaint, Dreier was arrested late Sunday night, presumably upon his arrival back in New York, on charges stemming from a $100 million fraud against various hedge funds.

The SEC Suit: The SEC also filed suit against Dreier on Monday, alleging that he has been marketing and selling fake promissory notes to investors. Click here for the SEC’s complaint.

The Wachovia Suit: Wachovia Bank sued Dreier LLP and Marc Dreier (in addition to a handful of others) today, alleging that a credit revolver and term loan extended to the firm are in default, as of November 1, upon which the bank is owed some $12.7 million. Click here for a copy of the complaint.

Dreier has tapped Gerald Shargel to represent him. Reached via email by Dow Jones Newswires, Shargel declined to comment, saying only, “I will have a comment later.”

Full post as published by Law Blog - WSJ.com on December 08, 2008 (boomark / email).