NY Lawyer Pleads Guilty to $400M Fraud

Dreier bilked clients, spent cash on yacht and beach houses
By Jason Farago,  Newser Staff
Posted May 12, 2009 8:34 AM CDT

(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.

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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.” (Read more Marc Dreier stories.)

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