Legal News

Dreier Pleads, Prosecutors Say He Asked Other Lawyers for Clients to Cheat

By Nathan Koppel

As expeced, Marc Dreier has pleaded guilty to fraud and other charges in connection with his scheme to sell fictitious promissory notes.

Here’s a report from LB colleague Chad Bray.

Dreier, 58, pleaded guilty to conspiracy, securities fraud, money laundering and five counts of wire fraud at a hearing before U.S. District Judge Jed Rakoff in Manhattan.

”From in or about 2004 to in or about 2008, I engaged in a scheme to sell ficitious promissory notes,” Dreier said.

He faces up to 20 years on each count of the most serious charges of securities fraud, wire fraud and money laundering. Prosecutors have indicated he should face a life sentence under federal sentencing guidelines. Sentencing is set for July 13.

During Monday’s hearing, Assistant U.S. Attorney Jonathan Streeter said Dreier held parties in which he invited celebrities and he attempted to pitch the notes to individuals. Dreier also approached lawyers he knew in New York and asked them to solicit their clients to buy the notes, Streeter said.

Dreier also is facing civil charges by the U.S. Securities and Exchange Commission, filed in December, and his assets have been frozen. His law firm, Dreier LLP, filed for bankruptcy protection on Dec. 16.

Full post as published by Law Blog - WSJ.com on May 11, 2009 (boomark / email).