A US prosecutor estimates losses of $380 million in an alleged hedge fund fraud linked to prominent New York attorney Marc Dreier.
Prosecutor Jonathan Streeter called Dreier a “Houdini of impersonation.” He was arrested Sunday in what federal authorities called a “stunning, brazen fraud.”
Streeter cited “over $380 million actual loss. … There’s a large amount of money completely unaccounted for.”
Magistrate Judge Douglas Eaton denied bail and ordered detention Thursday for Dreier.
“His life has completely unraveled,” said the prosecutor, adding that the fraud has been going on since at least 2006 and Dreier had duped “some of the most sophisticated investors in the world.”
Dreier’s lawyer, Gerald Shargel, calls the case “very complicated.” He sought $10 million bail.
Dreier LLP partner Joel Chernov says $27 million appears to be missing from escrow accounts.
Dreier also is charged in Toronto with impersonation in connection with the attempted sale of $45 million of notes to a hedge fund.