Free Market Evaluation - Send us your resume and we will give you free feedback
Obama Moves to Block Drilling in Alaska
Obama Moves to Block Drilling in Alaska
Drone Crashes onto White House Property
Drone Crashes onto White House Property
Lawyer Claims Client Lit His Friend on Fire Because She Wanted It
Lawyer Claims Client Lit His Friend on Fire Because She Wanted It
Documents Reveal How Sheldon Silver Made Millions from Obscure Legal Jobs
Documents Reveal How Sheldon Silver Made Millions from Obscure Legal J...
Legal Job Listings

Dreier-gate Day 4: Millions Missing From Dreier LLP Accounts

At the WSJ Law Blog:

A flurry of SEC filings, reviewed last night by the Wall Street Journal, reveal new allegations of [Dreier LLP founder Marc] Dreier’s recent activities, including allegations that funds are missing from clients’ escrow accounts. Here’s the WSJ story.

According to a declaration by the firm’s Controller John Provenzano, millions of dollars owed to clients appeared to be missing from the firm’s accounts.

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Provenzano says that last week, Dreier called him multiple times from a Canadian jail (where Dreier was held on impersonation and fraud charges), begging Provenzano to wire $10 million of firm money to his personal account.  Provenzano refused, but Dreier was able to get his bank to comply.

Provenzano also admitted that since 2005, Dreier has taken up to $40 million our of Dreier LLP accounts to buy art.

Also, from Dreier LLP partner Joel Chernov:

… because Dreier ran the firm by himself he was the only one who could access bank accounts to transfer or disburse money to rectify many of the financial problems. The December health insurance premiums have not been paid, the firm’s December rent is overdue and AT&T Inc. was set to terminate Blackberry service as of Tuesday. Chernov also says the quarterly premium for the firm’s malpractice insurance is four weeks’ overdue.

Chernov says requests are pouring in for the firm to return client funds held in escrow. But only Dreier can do so. “In addition, many Dreier LLP attorneys and staff have left the firm and it is my understanding that they have taken certain files with them.”

This post will be update as the situation develops.

Dreier-gate Day 4: Millions Missing From Dreier LLP Accounts by

Tagged: , , , , ,

Posted by on December 10, 2008. Filed under Home,Legal News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

 

 

Job of the Day
Capital Markets Attorney
USA-DC-Washington

Capital Markets Associate - DC Am Law 100 firm seeks a highly credentialed Capital Markets Associate to join their Group in Washington, D.C. This firm presents an opportunity for a top mid-level...

Related Posts: