It seems that Dreier was selling forged promissory notes and buyers accepted them because of his position as a leading lawyer. This is almost exactly the same as the Melnitzer case (well, he had forged securities and was borrowing against them but that's much of a muchness).
The only significant difference is that Dreier was working for much higher stakes and never had any hope of recovery -- Melnitzer could, in theory, have gotten away with it had things panned out perfectly (not that they ever do)
Dreier law firm in turmoil after founder's arrest
By Martha Graybow
NEW YORK, Dec 10 (Reuters) - The arrest of high-profile New York lawyer Marc Dreier for investment fraud has "had a neutron bomb-like effect" on his 250-attorney firm, with lawyers quitting and the law practice overdue on its rent and other bills, according to court papers.
Dreier LLP also has discovered that millions of dollars appear to be missing from client escrow accounts, firm controller John Provenzano said in a sworn statement filed by the U.S. Securities and Exchange Commission, which is seeking to freeze the assets of Dreier and his firm.
http://www.reuters.com/article/marketsNews/idUSN1053405520081210?sp=true
2 comments:
What is the common link between Melnitzer and Dreier? I don't mean they are both lawyers. Think hard. It explains a lot.
to anonymous, umm.. they're both men?
I KNOW what you are driving at anonymous...don't even go there.
Post a Comment