The law firm Dreier LLP yesterday filed for bankruptcy protection after its founder was jailed and accused of cheating hedge funds out of more than $100m.

Dreier, 58, a graduate of Harvard Law School and Yale College, persuaded two unidentified hedge funds to give him more than $100m by falsely claiming he was selling at a discount notes issued by New York developer Sheldon Solow.

At a Dec. 11 court hearing, prosecutors said they had discovered additional losses for a total of $380m.

Dreier, who was arrested on Dec. 7 as he returned to New York from Toronto, hasnâ??t responded to the charges.