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Dreier Crony Pleads Guilty to Fraud

MANHATTAN (CN) - A securities broker-dealer pleaded guilty Monday to two counts of fraud, admitting he helped disgraced attorney Marc Dreier sell more than $100 million in bogus promissory notes to hedge funds. Kosta Kovachev faces up to 25 years in prison, restitution and $500,000 in fines at his March 5, 2010 sentencing.

Kovachev, 58, pleaded guilty to conspiring to commit wire fraud and wire fraud, the U.S. Attorney's Office said.

Dreier in July was sentenced to 20 years in prison, ordered to forfeit $746.5 million and to pay $387.7 million in restitution.

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