Dreier Used Funds for Firm, Art, Investments, He Says
Marc Dreier, the New York lawyer accused of cheating hedge funds, lost part of the $380 million that prosecutors say he stole in failed investments and used the rest to repay the funds, cover his firm's expenses and buy property, he said, Bloomberg reported.
Dreier, who is being held in jail on fraud charges, today filed a new request for bail. As part of the request, Dreier detailed assets he owns including 150 pieces of artwork and numerous cars and homes. He and his lawyer, Gerald Shargel, also outlined how Dreier used the money the government says he stole.
Shargel said in a sworn declaration accompanying the filing that all of Dreier's assets have been frozen by the government and that Dreier isn't a risk to flee the country. "I currently have no money and no assets whatsoever," Dreier wrote. "I have no money abroad."
Dreier, 58, was arrested Dec. 7 on charges that he persuaded two unidentified hedge funds to give him more than $100 million by falsely claiming he was selling at a discount notes issued by New York developer Sheldon Solow. Prosecutors have since said that "very sophisticated investors" lost $380 million.
Prosecutors must respond to Dreier's filing by Jan. 21 and a hearing is scheduled in Manhattan federal court for Jan. 22. Janice Oh, a spokeswoman for Acting U.S. Attorney Lev Dassin, declined to comment.
Dreier, a graduate of Harvard Law School and Yale College, faces as long as 20 years in prison for securities and wire fraud. He has yet to formally respond to the charges. Separately, he faces charges in Toronto where he was arrested for impersonating a lawyer at the Ontario Teachers Pension Plan.