Once Prominent Lawyer Pleads Guilty To $700 Million Fraud

Photograph of Marc Dreier being escorted into court by Louis Lanzano/AP

From running a law firm that employed two hundred lawyers to facing life behind bars: Marc Dreier appeared in federal court and pleaded guilty to "money laundering, conspiracy, securities fraud and wire fraud." His admission read in part, "I engineered a scheme to issue and sell fictitious promissory notes purportedly issued by companies in the United States and Canada," and he noted that the scheme took place between 2004 and 2008.

Dreier, who turns 59 today, is accused of swindling investors out of $400 million by selling $700 million in fake promissory notes. The NY Times explains, "He then used the proceeds to maintain a lavish lifestyle, according to the authorities, which included owning a $10 million apartment on the Upper East Side, beachfront properties in the Hamptons, a valuable art collection, expensive cars and an $18 million yacht, documents show." Dreier was caught in Canada last year, as he posed as another lawyer during an attempt to sell notes to a Canadian pension plan. Once he was released, he was arrested by U.S. authorities at Laguardia Airport.

The U.S. Attorney's Office, which claims Dreier used his celebrity-filled parties to tout the promissory notes, believed it was unfair for him to "continue to live rent free in a spectacular apartment bought with his victims' money." Judge Jed Rakoff, who said Dreier "disgraced the honorable profession of law," unhappily allowed Dreier to stay out on his $10 million bail—"We rarely encounter a less appealing beneficiary of bail." But, according to the Post, Dreier's defense lawyer said his client has no money and that Dreier's son is using his bar mitzah money to pay for his dad's food!

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By Jen Chung in News on May 12, 2009 10:37 AM

Comments [rss]

NannyState

As cellies, Dreier and Madoff will someday shank each other over who took the last swig of the passover pruno.

Bubba

When are the feds going to seize the "assets" of Dreier's 19 year old son Spencer? The kid's a douche like his father and please explain to me how Spencer came to own property in the Hamptons? It was with this property that little Spencer was able to secure bail for his felonious father. A pox on the family Dreier...

r1b2

It's douche-day on the Gothamist.

Steven

Living the American dream on fraud. Many more people like him living right now.

thelexiphane

I can't wait to learn that Dreier's son received $34 million in bar mitzvah money.

PKinNYC

This counrty and it's greedy fucking bastard elitests...makes me cringe...they should all hang from their necks on a light pole on Wall Street.

hotstepper

his expression and tin man posture in that pic is really quite something to behold. there should be a website hawking pics of influential people being led into their courtroom of doom!

Snoopy

"Dreier's son is using his bar mitzah money to pay for his dad's food!" Very touching human interest story. I wish I had a son like that. But I'm not Jewish so I guess I can't.

mrguy

Jen- I normally love your posts and i visit this site several times per day; in other words, i'm not trying to be a troll here. But this is among the most sloppily written/edited items i've seen on Gothamist.

Jen Chung

Thanks for pointing that out. I think I've fixed everything.

Rocknrope

What's the difference between a lawyer and a bucket of sh*t?

The bucket.

Avaz383

Oy!

Snoopy

Happy birthday you pompous scumball. You look very extinguished in your new birthday suit.

ANGRYGOD11

But, he looks healthy and he's so much younger than Madoff. He looks like he will be around for decades.

JenChungsThong

Judge Jed Rakoff, who said Dreier "disgraced the honorable profession of law,"

Huh?? Honorable profession???? I think Dreier had a little help throughout the past century or so with that disgracing of law thing.

(What did Wil Shakespeare say? "Kill all the lawyers, kill them tonight').

ANGRYGOD11

(What did Wil Shakespeare say? "Kill all the lawyers, kill them tonight')

The most abused Shakespeare quote of all time. The characters wanting to kill all lawyers were criminals or gangsters who would take over, if there was no law.