NEW YORK - A U.S. prosecutor now estimates losses of $380 million in an alleged hedge fund fraud linked to a prominent New York lawyer.
Manhattan prosecutor Jonathan Streeter, arguing against bail, said today that Marc Dreier is a "Houdini of impersonation." He was arrested Sunday in what federal authorities called a "stunning, brazen fraud."
Dreier's lawyer, Gerald Shargel, calls the case "very complicated." He's seeking $10 million bail.
Dreier LLP partner Joel Chernov says in court papers that many lawyers have left the firm, rent is overdue, and BlackBerry service is being terminated. He says $27 million appears to be missing from the firm's escrow accounts.
Dreier also was charged last week in Toronto with impersonation in connection with the attempted sale of $45 million of notes to a hedge fund.