JD Journal » federal indictment

Dreier Formally Indicted On Securities & Wire Fraud Charges

Erik Even — Fri, 30 Jan 2009 21:00:23 +0000

Everyone’s favorite lawyer Marc Dreier, founder of New York’s Dreier LLP, was indicted by a federal grand jury yesterday.

The indictment follows Dreier’s December 7th arrest on charges that he persuaded two hedge funds to give him more than $100 million by falsely claiming he was selling at a discount notes issued by a New York developer. Prosecutors later said investors’ losses exceeded $400 million, a figure repeated in the indictment.

“Dreier conspired to engage in securities and wire fraud,” acting US Attorney Lev Dassin said.

The indictment expands the number of charges against Dreier, says his scheme began in 2004, and identifies new crimes he allegedly committed. Among them were the embezzlement of client funds and the sale of fake promissory notes purportedly issued by a Canadian pension plan.

Dreier, 58, hasn’t formally responded to the charges, but with the indictment he’ll be required to enter a plea. Dreier’s lawyer, Gerald Shargel, said his client wants to resolve the case with prosecutors.

A graduate of Harvard Law School and Yale College, Dreier is being held in prison after he was unable to post $20 million bail.

Dreier LLP, which had 250 lawyers and offices nationwide, filed for bankruptcy after its founder’s arrest.

Dreier also faces charges in Toronto, where he was arrested for impersonating a lawyer at the Ontario Teachers’ Pension Plan.

Sexual Abuse Charges Mount Against Federal Judge

Erik Even — Thu, 08 Jan 2009 18:43:38 +0000

US District Judge Samuel B. Kent of the Southern District of Texas, who faces trial on in Houston on three federal criminal charges, pleaded not guilty Wednesday to three additional charges in a superseding indictment.

The indictment brings one count of aggravated sexual abuse, one count of abusive sexual contact and one count of obstruction of justice against Kent.

Kent, a longtime Galveston federal judge who has been hearing civil cases in Houston for the past year, is free on a personal recognizance bond.

Federal prosecutors were granted a 55-minute closed-court session on Wednesday. The prosecutors, and Kent’s attorney, Dick DeGuerin of Houston, cannot speak to the press under a gag order by presiding Judge Roger Vinson. DeGuerin has complained publicly and in court about the gag order.

In September 2008, Kent pleaded not guilty to the original three charges, which are two counts of abusive sexual contact and one count of attempted aggravated sexual abuse. Those charges stem from a complaint filed by Kent’s former case manager in Galveston, Cathy McBroom, but the alleged victim in the superseding indictment is only identified as “Person B.”

Here’s where the story gets a bit NSFW:

The government alleges that on one or more occasions, Kent, while at the US Post Office and Courthouse in Galveston, “did engage and attempt to engage in contact between his mouth and Person B’s vulva by force and did penetrate and attempt to penetrate the genital opening of Person B by a hand and finger by force with an intent to abuse, humiliate, degrade and arouse and gratify the sexual desire of any person.”

As to the new abusive sexual conduct charge, the indictment alleges that during the same time frame, Kent “did engage in the intentional touching, directly and through the clothing, of the genitalia, groin, breast, inner thigh, and buttocks of Person B with an intent to abuse, humiliate, harass, degrade, and arouse and gratify the sexual desire of any person.”

The maximum punishment on the new abusive sexual contact charge is two years in prison. The maximum punishment on the new aggravated sexual abuse charge is life in prison and/or a $250,000 fine, and the maximum punishment on the new obstruction of justice charge is 20 years in prison and/or a $250,000 fine.

Kent denies the charges.

Dreier Accused of Fabricating Scam [Video]

Erik Even — Wed, 10 Dec 2008 00:50:16 +0000

From LawCrossing.com:

Mark Dreier, in hot water since last week, has allegedly tried to obtain millions of dollars for his firm illegally.

In a federal indictment released today, Dreier is accused of fabricating a $100 million dollar scam that began in October. The allegations hold that Drier falsely told two hedge funds that a real estate company in New York was offering discount priced promissory notes.

To grow the hedge funds interest and ultimately get them to purchase, Dreier allegedly fabricated the promissory notes themselves, had someone impersonate the CEO of the real estate company, and forged documents from an accounting firm.

It is now reported that Dreier was caught on tape confessing to the crime in conversations with a government informant.

Marc Dreier is also facing a charge of criminal impersonation by Canadian authorities involving a multi-million dollar deal between the Ontario Teachers’ Pension Plan and Fortress Credit Opportunities.

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