KWCH.com – A prominent New York law firm is expected to seek bankruptcy protection.
That’s according to a receiver appointed to run the firm — which has been scandalized by charges that its founder was behind a massive fraud.
The receiver also predicted that the founder — Marc Dreier — will soon seek bankruptcy protection as well.
Dreier was jailed last week after being charged in a criminal complaint and by the Securities and Exchange Commission in the alleged sale of fraudulent promissory notes.
He’s accused of an elaborate charade aimed at convincing three hedge funds that the investments were real.
Prosecutors have estimated total loses could top $380 million.