Lawyer Marc Dreier will plead guilty May 11 to money laundering and other charges in an alleged scheme to sell $700 million in fictitious promissory notes, his lawyer said Monday.
Gerald L. Shargel, Mr. Dreier's lawyer, said his client will enter a guilty plea to all the charges in a superseding indictment unsealed in March -- conspiracy, securities fraud, money laundering and five counts of wire fraud.
Mr. Dreier will plead guilty without a deal in place with the government, said Mr. Shargel, who had previously indicated they expected a quick resolution of the case.
On Monday, U.S. District Judge Jed S. Rakoff in Manhattan, without prejudice, denied a motion by Mr. Dreier to dismiss the securities-fraud charge.
Prosecutors have alleged that Mr. Dreier sold about $700 million of fake promissory notes and misappropriated client funds from his law firm.
The out-of-pocket loss to investors and clients when the fraud was discovered in December was more than $400 million, the government has said.
The overall scheme allegedly ran from 2004 to 2008.
Source: The Wall Street Journal
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