Marc Dreier, a New York lawyer accused of cheating hedge funds, lost part of the $380m that prosecutors say he stole in failed investments. The rest was used to repay the funds, cover his firm??s expenses and buy property, his lawyer said.Dreier, who is being held in jail on fraud charges, today filed a new request for bail. As part of the request, Dreier detailed assets he owns including dozens of pieces of artwork and numerous cars and boats. His lawyer, Gerald Shargel, also outlined how Dreier used the money the government says he stole.
Dreier was arrested Dec. 7 on charges that he persuaded two unidentified hedge funds to give him more than $100m by falsely claiming he was selling at a discount notes issued by New York developer Sheldon Solow. Prosecutors have since said that ??very sophisticated investors? lost $380m.
Dreier made interest and principal payments to the hedge funds; transferred money to his law firm??s accounts ??to cover millions of dollars in deficits?; ??invested and, for the most part, lost in the stock market?; or bought real estate, artwork and other property, Shargel said.
