Legal News

Hung Out to Dreier: A Colorful List of Victims

By Nathan Koppel

It's been quiet on the Marc Dreier front since July when the New York attorney/swindler was sentenced to 20 years in prison for defrauding clients and investors of around $400 million dollars.

But on Wednesday, New York judge Jed Rakoff entered this order setting out exactly who lost what in the Dreier scam.

The list includes hedge funds, which bought some of the phony financial instruments peddled by Dreier. The biggest fund losers were Elliot Associates, which lost about $100 million, and Fortress, which got taken for about $85 million.

Various former clients of Dreier LLP, including some prominent fashionistas, are also on the victims list. Dreier was accused of taking money from client escrow accounts.

According to the restitution order, Coogi, famous for its colorful sweaters (one of which is pictured), got socked for $47,000; Nike is owed $243,000; Tommy Hilfiger, $3,800; and Diesel, Adidas and Nautica are owed more than $15,000 combined.

Some of you may be wondering, where exactly is Marc Dreier? He was sentenced more than a month ago, but he still resides at the Metropolitan Correctional Center in New York Center, a temporary holding facility, the former home of Bernie Madoff and current home of Madoff associate Frank DiPascali. We’ll let you know where he ultimately lands.

The list includes hedge funds, which bought some of the phony financial instruments peddled by Dreier. The biggest fund losers were Elliot Associates, which lost about $100 million, and Fortress, which got taken for about $85 million.

Various former clients of Dreier LLP, including some prominent fashionistas, are also on the victims list. Dreier was accused of taking money from client escrow accounts.

According to the restitution order, Coogi, famous for its colorful sweaters, got socked for $47,000; Nike is owed $243,000; Tommy Hilfiger, $3,800; and Diesel, Adidas and Nautica are owed more than $15,000 combined.

Some of you may be wondering, where exactly is Marc Dreier? He was sentenced more than a month ago, but he still resides at the Metropolitan Correctional Center in New York Center, a temporary holding facility, the former home of Bernie Madoff and current home of Madoff associate Frank DiPascali. We’ll let you know where he ultimately lands.

Full post as published by Law Blog - WSJ.com on August 20, 2009 (boomark / email).