Hedge Fund Sues Dechert, Claims $125M Loss in Dreier Ponzi Scheme
Posted Dec 21, 2009 7:36 PM CST
By Martha Neil
Contending Dechert issued a "false" opinion letter used by then-practicing attorney Marc Dreier to defraud Fortress Investment Group, the private equity and hedge fund firm sued the legal partnership today for damages in New York state court.
Its lawsuit alleges that phony promissory notes purchased by the sophisticated investor from Dreier, who headed a prestigious New York law firm, cost Fortress $125 million. However, a spokeswoman for Philadelphia-based Dechert describes the Fortress suit as "completely baseless" and promises a vigorous defense, reports the Wall Street Journal (sub. req.).
Dreier is now serving a 20-year federal prison sentence for his wide-ranging Ponzi scheme.
ABAJournal.com: "Attorney Marc Dreier Says Midlife Crisis, Sense of Failure Drove Massive Fraud"
ABAJournal.com: "Ex-SEC Lawyer Pleads in Dreier Case, Got $100K to Play Role re $44M in Fake Notes"