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White-Collar Crime

Trustee Says Dreier Had Run Through Most of His Cash

Posted Mar 26, 2009 6:39 AM CDT
By Debra Cassens Weiss

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A receiver appointed to locate the assets of Marc Dreier says the New York lawyer had run through most of his cash by the time he was charged with selling fake promissory notes.

The report by receiver Mark Pomerantz of Paul, Weiss, Rifkind, Wharton & Garrison suggests a relationship between Dreier’s financial straits and his alleged crimes, the New York Law Journal reports.

"Facts suggest that as of September or October 2008, Dreier had largely run through the cash under his control and was relying on additional sales of fictitious notes to pay overdue bills, replenish stolen escrow funds, and maintain the extravagant lifestyle that his crimes had made possible," the report said.

By the time Dreier was arrested Dec. 2 in Toronto, Dreier was behind on everything from payments to the crew of his yacht to "mundane firm expenses like car service and off-site storage," the report said. "The absence of cash may explain Dreier's desperate attempts to sell additional notes in Canada,” the report said.

Dreier’s 121-foot yacht is among assets valued at $100 million that have been recovered by Pomerantz, Bloomberg reports. Other recovered items include $39 million in artwork, five cars and three properties in the Hamptons.

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