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THURSDAY, NOVEMBER 26, 2009
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NY Lawyer Pleads Guilty to $400M Fraud

Dreier bilked clients, spent cash on yacht and beach houses

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(Newser) – New York lawyer Marc Dreier pleaded guilty yesterday to selling hundreds of millions in bogus promissory notes to hedge funds and other clients, reports the Times. Dreier, 59, used the $400 million to fund a Manhattan apartment, beachfront houses, and an $18 million yacht. “He has disgraced the honorable profession of law,” said the judge after he entered his plea.

Dreier pleaded guilty to all eight charges of the indictment, including conspiracy, securities and wire fraud, and money laundering. He could face life in prison, although the judge allowed him to remain in his apartment until sentencing. Asked if he was aware of the consequences of his behavior, Dreier told the court that he knew what “I was doing was illegal.”

Marc Dreier, left, is escorted by a US Marshal from federal court, Feb. 13, 2009, in New York.
Marc Dreier, left, is escorted by a US Marshal from federal court, Feb. 13, 2009, in New York.   (AP Photo)
Attorney Marc Dreier arrives at Manhattan federal court yesterday; he pleaded guilty to defrauding hedge funds of at least $400 million.
Attorney Marc Dreier arrives at Manhattan federal court yesterday; he pleaded guilty to defrauding hedge funds of at least $400 million.   (AP Photo)
Marc Dreier arrives at Manhattan federal court yesterday.
Marc Dreier arrives at Manhattan federal court yesterday.   (AP Photo)
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5 comments
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Observer
May 12, 09 8:42 AM CDT
Since when is being a lawyer "honorable". Reply
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Reader64481089
May 12, 09 9:23 AM CDT
“He has disgraced the honorable profession of law,”??? I am aghast, I had no idea a metamorphosis had transformed the profession of law had become an honorable profession, just a lucrative bunch of glorified ambulance chasers from all my experience with lawyers this one was inventive enough to steal million and get caught. Reply
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+2
kokuaguy
May 12, 09 10:59 AM CDT
Name an honorable profession. Reply
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+1
Reader64481089
May 12, 09 12:25 PM CDT
Well let me see, an honorable profession....seems to me being a prostitute is a much more honorable profession, when they screw you for your money you actually pay to be screwed. Reply
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IN RESPONSE:
jaguarj
May 12, 09 4:05 PM CDT
Voice of experience???
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