Apologies, readers. Although we broke the story of high-profile lawyer Marc Dreier’s arrest in Canada, we’ve fallen behind in covering the latest developments in the Dreier saga (of which there have been many). Fortunately, our friends over at Am Law Daily and the WSJ Law Blog have been following the story quite closely.
We’ve collected some links at the end of this post. The highlights:
- A summary of recent developments, from the WSJ Law Blog: “Dreier appeared to get hit from all sides: a criminal charge in New York stemming from an alleged $100 million fraud against various hedge funds; an SEC suit alleging Dreier had been marketing and selling fake promissory notes to investors; and a suit by Wachovia Bank against Dreier, Dreier LLP (and a handful of others), alleging that a credit revolver and term loan extended to the firm are in default, as of November 1, upon which the bank is owed some $12.7 million.”
- The latest news, from Am Law Daily: “[I]t appears very likely that client funds are indeed missing, according to a sworn statement (PDF) that Dreier partner Joel Chernov gave the SEC…. In the statement, Chernov said Dreier spoke to him and fellow Dreier partner Steven Gursky from a Toronto jail after his arrest there for impersonating a lawyer in an attempt to scam an investment group into wiring him more than $30 million. In those conversations, Chernov told the SEC, Dreier admitted improperly using client funds. Dreier also said that he could have refilled the escrow accounts if only he could return to New York. How? Apparently by selling part of an art collection valued at between $30 and $40 million, according to a separate statement (PDF) from John Provenzano, the firm’s Controller.”
“In his statement, Provenzano claimed Dreier called him twice from the Toronto jail asking him in separate requests to wire $8 million and $10 million from the firm’s escrow accounts into Dreier’s personal accounts. Provenzano (wisely) refused. He also told Dreier the firm owed clients $38 million in connection with its representation of 360Networks. That’s when Dreier mentioned the money he could make selling his art.”
Fine art — no surprises there. As noted, Marc Dreier has a taste for the finer things in life (like luxury real estate).
And that’s not all. A source tells us that Dreier is something of a playboy, with a pattern and practice of dating Maxim models (yes, plural). And “not ‘Maxim-quality’ models,” emphasized our source, “but actual Maxim models.”
If Marc Dreier ends up in prison, at least he’ll have nice memories to keep him warm at night.
Filings Describe “Devastating Effect” on Dreier LLP [WSJ Law Blog]
Dreier Faces More Allegations [Wall Street Journal (subscription)]
The Death of the Dreier Model [Am Law Daily]