Marc Dreier, the New York law firm founder accused of cheating hedge funds and other investors of more than $400m, was indicted by a federal grand jury.
The indictment follows Dreier??s Dec. 7 arrest on charges that he persuaded two hedge funds to give him more than $100m by falsely claiming he was selling at a discount notes issued by Sheldon Solow, a New York developer. Prosecutors later said investors?? losses exceeded $400m, a figure repeated in the indictment.
??Dreier conspired to engage in securities and wire fraud,? Acting U.S. Attorney Lev Dassin in New York said in a statement announcing the seven-count indictment.
The indictment expands the number of charges against Dreier. It also 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.
