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Dreier Indicted in Federal Court (UPDATE)

Federal prosecutors have charged Marc Dreier, founder of Manhattan’s Dreier LLP, with theft in connection with his alleged attempt to secure a loan by impersonating another lawyer in Toronto.

Dreier has retained celebrity lawyer Gerald Shargel, and is scheduled to appear at US District Court for the Southern District of New York today.

Dreier allegedly impersonated a lawyer for the Ontario Teachers Pension Fund during a meeting with an executive for Fortress Investment Group, using the other lawyer’s business card, which Dreier had received from the lawyer earlier that day.

Dreier was allegedly seeking money for a sham transaction.

He spent three nights in an Ontario jail before making bond and flying back to New York with Shargel. Federal authorities were waiting at the airport and arrested Dreier.

Shargel has represented several high-profile clients, including mob boss John Gotti, lawyers who allegedly bribed and threatened witnesses, and an elderly Texas oil man who scammed the UN’s oil-for-food program with Iraq.

UPDATE

From WSJ LawBlog:

The Criminal Charge: … Dreier was arrested late Sunday night, presumably upon his arrival back in New York, on charges stemming from a $100 million fraud against various hedge funds.

The SEC Suit: The SEC also filed suit against Dreier on Monday, alleging that he has been marketing and selling fake promissory notes to investors.

The Wachovia Suit: Wachovia Bank sued Dreier LLP and Marc Dreier (in addition to a handful of others) today, 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.

Harrison Barnes: