Marc Dreier, the jailed New York law firm founder, must remain in prison while he fights charges that he swindled hedge funds, a federal judge ruled after a prosecutor accused the lawyer of stealing $380 million.
“The evidence does appear to show an enormous risk of flight,” U.S. Magistrate Judge Douglas Eaton said at a bail hearing today in Manhattan federal court for Dreier, namesake of the New York law firm Dreier LLP.
Dreier, 58, was arrested on Dec. 7 on U.S. charges that he persuaded two unidentified hedge funds to give him more than $100 million by claiming, falsely, that he was selling at a discount notes issued by New York developer Sheldon Solow. He was arrested after returning to New York from Toronto, where he had been briefly jailed for impersonating a lawyer at the Ontario Teachers Pension Plan.
More links and discussion, after the jump.
Details of Dreier’s rejected bail offer:
[Marc Dreier's] attorney, Gerald Shargel, asked Eaton to impose a $10 million bond that would be guaranteed by his client’s 19-year-old son and 85-year- old mother. Dreier agreed to electronic monitoring at his home in New York or in Quogue, Long Island, and to be guarded by two armed guards he would pay for, Shargel said.
As previously noted, Dreier isn’t enjoying his time in custody:
Since his arrest, Dreier has been held in isolation in a Manhattan federal prison cell, a situation Shargel called “inhuman.” Shargel said prison officials said they had to check into whether Drier belonged to a gang. The defense lawyer asked the judge to order Dreier transferred into the general prison population.
“He doesn’t have a book to read,” Shargel said. “You can lose your mind.”
To quote Paris Hilton, “Mom! Mom! It’s not right.”
Breaking: Dreier Denied Bail, Labeled a Lawyer “Houdini” [Am Law Daily]
Marc Dreier Denied Bail, to Remain Detained [WSJ Law Blog]