Fraudster-Lawyer Had a Fraudster-Partner

The Marc Dreier case just gets more entertaining. Readers may recall the formerly high-powered law firm boss was busted in Canada last year for pretending to someone else at a pension fund meeting. It was eventually revealed that he'd been masquerading like this for months, making $700 million on fake notes he peddled without authorization. Now it seems he had an accomplice equally adept at make-believe: the New York Law Journal tells us that Kosta Kovachev, a former broker, went with Dreier to the offices of Solow Realty, one of Dreier's clients, to meet representatives of a New York hedge fund. Dreier hustled everybody into a conference room and introduced Kovachev to them as one of Solow's financial officers -- which he was not. The pair then made a deal with the hedge funders for some fake Solow notes, and netted $13.5 million.

Kovachev allegedly pulled this routine a few times, and Dreier's firm paid him $215,000 for his acting. By the time this is all sorted out, it will turn out that Dreier had a whole company of fakes working for him. Maybe they can open a rep company in prison.

Meanwhile creditors of Dreier LLP, the now-bust firm Dreier ran, appeared before a judicial panel to argue that they would be harmed by the government forfeitures that are anticipated to come from his conviction, and to plead "victim" status.


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