Lawyer Marc Dreier to Plead Guilty to Money Laundering

on Sunday, April 29, 2012
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

0 comments:

Post a Comment