(CN) - Park Avenue attorney Marc S. Dreier has been suspended from practicing law, pending the outcome of an investigation into charges that he raised at least $113 million from the sale of fictitious promissory notes.
A New York appellate division voted 5-0 to suspend Dreier based on evidence that he "was engaged in a fraudulent scheme to sell investors fictitious promissory notes for a profit of over $100 million."
In early December 2008, the Securities and Exchange Commission charged Dreier with selling the bogus notes, complete with fabricated financial statements and audit opinion letters, to hedge funds and other private investment funds. The notes were purportedly issued by a New York City real estate investment company.
"Our complaint alleges a stunning, brazen fraud that targeted some very sophisticated institutional investors," said Linda Thomsen, director of the SEC's enforcement division.
Dreier is the founder and managing partner of Dreier LLP, a 250-attorney law firm that filed for bankruptcy in mid-December.