Dreier, LLP Bankruptcy Petition (Chapter 11)Dreier Law Firm Files For Ch. 11 Bankruptcy
After Founder and Managing Partner Marc Dreier
Is Charged by Authorities
December 16, 2008
New York law firm Dreier, LLP filed for bankruptcy, listing more than $100 million in assets and liabilitities of between $10 - 50 million. The filing was made by a court-appointed receiver acting on behalf of the lawyer Marc Dreier, its founder and managing partner, after he was charged with securities and wire fraud by federal prosecuters and the U.S. Securities and Exchange Commission.
According to a letter filed by the court-appointed received for Dreier and his assets, "the purposes of the receivership are best served by filing a banruptcy petition(s) in respect of Dreier, LLP and possibly certain other related entities in which Mr. Dreier has interests."
The list of the law firm's 30 largest unsecured creditors lists the commerical landlord at 499 Park Avenue in Manhattan being owed more than $900,000; an American Express debt of more than $323,000; a $167,000 that is due to the firm's Fidelity 401(k) fund, and nearly $150,000 owed to the firm’s health insurance plan.
According to legal filings, the 58-year-old Dreier is the firm's sole equity partner and "sole signatory on all of the firm's approximately thirteen to fourteen escrow accounts."
On December 4, 2008, New York City law The is accused of securities and wire fraud for allegedly scamming approximately $100 million from hedge funds by falsely claiming that he represented a real estate developer "offering to sell notes…at a substantial discount."
According to the S.E.C., "[s]ince at least October 2008, Dreier has been offering the bogus securities of unwitting legtimate issuers to hedge funds."
Dreier was arrested by Canadian police in Toronto, Ontario on December 2, 2008 for allegedly trying to "impersonat[e] an employee of a Canadian entity in connection with the sale to Hedge Fund #3 of notes…which totaled approximately $44.7 million."
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