NEW YORK — Marc Dreier, a New York law-firm founder, was sentenced Monday to 20 years in prison for defrauding hedge funds of more than $400 million and stealing from clients.
U.S. District Judge Jed Rakoff sentenced Dreier, 59, to a term far shorter than the 145 years sought by prosecutors. Dreier also was ordered to pay $387.7 million in restitution.
Dreier pleaded guilty to charges of money laundering, conspiracy, securities fraud and wire fraud after he was charged with selling more than 85 phony promissory notes to at least 13 hedge funds and three individuals from 2004 to 2008, prosecutors said. Dreier admitted that he lied to his investors when he said the fake notes were issued by New York developer Sheldon Solow, a client of his firm.
Dreier was arrested in Toronto on Dec. 2 and charged with impersonating a lawyer with the Ontario Teachers’ Pension Plan. Bloomberg News; Bloomberg News photo
