January 9, 2009 11:30 AM

Dreier Update: Lawyer Objects to Asset Freeze, Continued Imprisonment

Posted by Zach Lowe

Quick update on the case of Marc Dreier courtesy of The New York Law Journal, an Am Law Daily sibling publication that spoke to Dreier's lawyer, Gerald Shargel, on Thursday. In court papers filed Wednesday, Shargel asked the judge in the Securities and Exchange Commission's civil case against Dreier for a hearing to contest the SEC's order that Dreier's assets be frozen. The reason? Dreier needs money for his legal fees. 

Shargel also continues to work hard to get Dreier out of jail, where he's been since his arrest on charges of attempting to scam hedge funds out of as much as $380 million by selling them bogus promissory notes. Shargel says Dreier has no "reservoir" of money either here or overseas, and therefore shouldn't be considered a flight risk. Dreier's also cooperating with his defunct-firm's receiver, Mark Pomerantz of Paul, Weiss, Rifkind, Wharton & Garrison, in going through the firm's assets. All of that will factor into a new bail application Shargel expects to file within a week. Shargel will also likely use Bernard Madoff's continued freedom to argue Dreier deserves to be out on bail--especially if the judge in Madoff's case rejects a prosecutor's claim that Madoff should be locked up after evidence surfaced showing Madoff mailed friends and family $1 million in jewelry late last month in an apparent violation of his bail conditions.

One last Dreier note: The law firm Klestadt & Winter was appointed counsel to the committee of unsecured creditors in the Dreier LLP bankruptcy case, the NYLJ reports.

Make a comment

Comments (0)
Save & Share: Facebook | Del.ic.ious | | Email |

Reprints & Permissions

Post a comment

If you have a TypeKey or TypePad account, please Sign In

You are currently signed in as (nobody). Sign Out

Name:

Email Address:(Not displayed with comment.)

URL:

Remember personal info?

Comments: