Law.com – Marc S. Dreier on Wednesday sent a confessional letter to the federal judge who will sentence him on Monday (pdf), describing in remarkable detail how he funded the once-admired expansion of Dreier LLP by committing frauds totaling more than $400 million.

Facing a recommendation from the government that he serve the rest of his life in prison but pleading for a measured sentence, Dreier, 59, said his seven-year downward spiral began with a simple theft from a client settlement fund and ended at the point where "I found myself running a massive Ponzi scheme with no apparent way out."

Dreier’s letter was submitted as defense attorney Gerald L. Shargel and Assistant U.S. Attorney Jonathan R. Streeter sent competing memos to Southern District of New York Judge Jed S. Rakoff taking a dramatically different view of the U.S. Sentencing Guidelines.

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Tags: defense attorney, downward spiral, dreier, federal judge, frauds, jed, jonathan, life in prison, memos, ponzi scheme, remarkable detail, sentencing guidelines, settlement fund, shargel, southern district of new york, streeter, york judge

West Palm Beach (HedgeCo.net) – Federal Judge Stanley R. Chesler of the Federal District Court of New Jersey, Friday threw out a Canadian pharmaceutical company shareholder lawsuit against a group of hedge funds including SAC Capital Advisors LP.

The Judge dismissed the lawsuit, saying "The conduct is so egregious, and the futility of imposing alternate sanctions is so clear, that dismissal is the only appropriate sanction."

Apparently the shareholders had violated a New York judge’s order sealing documents in a related Biovail case.

"The record before the court suggests that these proceedings and the RICO action proceedings were all part of a choreographed strategy by Biovail and its attorneys designed to constitute a counterattack against the Biovail securities action," the Judge wrote.

"We are gratified that the court has seen through this charade and has dismissed the case," A spokesman for SAC said.

Alex Akesson

Editor for HedgeCo.Net
Email: alex@hedgeco.net

Tags: accredited-investors, biovail, charade, counterattack, federal judge, federal-district-court, futility, hedgeco, palm-beach, pharmaceutical company, sac-capital-advisors, sanction, sanctions, shareholder-lawsuit, stanley r chesler, york judge