Legal News

In Wake of Founder?s Arrest, Dreier LLP on Brink

By Ashby Jones

Things aren’t looking too hot over at 499 Park Ave., where Dreier LLP is based. In the wake of last week’s arrest of the firm’s founder, Marc Dreier, up in Toronto, the firm is in danger of collapsing. Click here for today’s WSJ story, which has more details on the circumstances surrounding Dreier’s arrest; click here and here for Law Blog coverage from last week; here from a story from AmLaw Daily, which contains a link to the document issued last week by police in Toronto as well as a picture of a disheveled and wind-blown Dreier.

On the firm itself: The firm is reeling, with lawyers scrambling to launch new firms, after Dreier — its sole equity partner — was arrested Tuesday in Toronto for allegedly impersonating another person to complete a business transaction. He has been released on bail but faces a criminal charge that carries a possible 10-year prison term.

It’s still possible the firm could recover, but several partners interviewed say they have their doubts. One litigation partner said he spent Saturday packing up his personal effects. “Bank accounts have been frozen; they’re shutting our BlackBerrys down on Monday,” he said.

Dreier, 58 years old, hasn’t responded to requests for comment. His attorney, Edward Greenspan, said Dreier will plead not guilty to the charges in Canada. Greenspan called the allegations against his client relatively minor and said that no money changed hands. He declined to say more, citing a court order.

Of course, we’ll keep you posted on events as they unfold.

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