Marc Dreier – $700 Million Ponzi Scheme in Promissory Notes
Posted on | October 4, 2009 | 1 Comment
Marc Dreier is currently in federal prison for a ponzi scheme to sell $700 million in fictious promissory notes. He plead guilty on May 11, 2009 to eight charges that included on count of conspiracy to commit securities fraud and wire fraud, one count of money laundering, one count of securities fraud and five counts of wire fraud in a scheme to sell $700 in fictitious promissory notes. Each of the counts carry a maximum penalty of 20 years in prison with the exception of the conspiracy count which carries five years in prison.
Over 200 creditors have filed more than $450 million in claims against Dreier. The largest client, Eton Park Capital Management is seeking over $84 million. There are more than 800 pages of clients that have been filed in a New York court including some famous names. These names include Bill Cosby, Justin Timberlake, Jon Bon Jovi, 50 Cent, Maria Sharapova and the sports teams Manchester United and the New York Mets. The Major League Baseball Players Association is also on the list of clients.
On July 13, Marc Dreier was sentenced to 20 year which began immediately. In a letter to the Court Dreier wrote, “I recall only that I was desperate for some measure of the success that I felt had eluded me. I lost my perspective and my moral grounding, and really, in a sense, I just lost my mind.” He also made the statement “I engineered a scheme to issue and sell fictitious promissory notes purportedly issued by companies in the United States and Canada,”
The case of Marc Dreier and his Ponzi Scheme is the lead story on 60 Minutes tonight and he is expected to tell his story unlike Bernie Madoff. It will be very interesting to hear what he has to say. Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below. We offer information on everything from getting a lower mortgage rate to increasing your credit score.
Author: Alan Lake
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One Response to “Marc Dreier – $700 Million Ponzi Scheme in Promissory Notes”
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October 4th, 2009 @ 6:37 pm
Oh, its fictitious promissory notes. Okay. Thanks for the information.