MANHATTAN (CN) – Attorney Marc Dreier on Monday was sentenced to 20 years in prison for securities fraud. U.S. District Judge Jed Rakoff also ordered him to pay $388 million in restitution and to forfeit $746 million in assets. Prosecutors sought a sentence of 145 years.
In sentencing Dreier, however, Judge Rakoff said he refused to equate Dreier’s $400 million scam with Bernard Madoff’s $60 billion Ponzi scheme, and he gave Dreier the lesser sentence. Dreier was handed over to the Bureau of Prisons.
Dreier was arrested in Toronto last December, impersonating an employee of a teachers pension plan to try to sell a bogus note for millions of dollars. Dreier, 59, a graduate of Harvard Law School, pleaded guilty to eight charges, including securities fraud, wire fraud and money laundering. Prosecutors said he stole more than $46 million.
Dreier wrote to Judge Rakoff last week that he began stealing from clients in 2002, taking money from a settlement. His scheme of selling phony financial paper cost victims more than $400 million.