Judge Rules for Hedge Fund to Take $33 Million in Art from Swindler

  • July 09, 2013 09:18

  • Email
Marc Dreier

On July 2, 2013, Federal Judge Jed Rakoff upheld a decision to allow a hedge fund to take possession of 15 artworks from accused Ponzi schemer Marc Dreier.

A Harvard and Yale-educated lawyer (now disbarred), Dreier, dubbed the "Mini-Madoff," is serving 20 years in federal prison for a 2009 investment fraud conviction. His eight-count indictment included five counts of wire fraud in a scheme to sell $700 million in fictitious promissory notes.

The current court decision involved his pledge of 15 artworks worth about $33 million to a hedge fund as security to make a deal go through.

Part of Dreier's personal art collection, containing works by the likes of Andy Warhol, Mark Rothko and Roy Lichtenstein, was collateral for $100 million in phony notes that he helped the hedge fund acquire.

Seascape, the 123-foot yacht once owned by lawyer-cum-swindler Marc Dreier.

A group of other institutional victims of Dreier's crimes had opposed the hedge fund's settlement proposal in written statements to the court last year, but the federal judge upheld the decision in the hedge fund's favor.

More than 200 of Dreier's creditors have filed a total of more than $450 million in claims.

From Hamptons beach homes to Warhol prints, much of Dreier's real estate and other assets were liquidated to satisfy some creditors. Other works from his art collection were auctioned off in 2011.

"Fraud is the dysentery of crime: even after the infection is contained, the unpleasant after-effects linger interminably. Thus it is that even after a confidence man has been convicted, the victims of his fraud are often reduced to fighting among themselves over what assets remain," wrote Judge Jed Rakoff in his ruling on July 3, 2013.

 


  • Email

More News Feed Headlines

Joseph Mallord William Turner (1775-1851) Sunset, 1830-5.

After 13 Years, ARTFIXdaily to Cease Daily News Service

  • ArtfixDaily / August 15th, 2022

ARTFIXdaily will end weekday e-newsletter service after 13 years of publishing art world press releases, events and ...

Read More...
Einar and Jamex de la Torre, Critical Mass, 2002 (Courtesy of the Cheech Marin Collection and Riverside Art Museum).

Inaugural Exhibition at The Cheech Highlights Groundbreaking Chicano Artists

  • ArtfixDaily / July 7th, 2022

One of the nation’s first permanent spaces dedicated to showcasing Chicano art and culture opened on June ...

Read More...
Jacob Lawrence,.  .  .  is life so dear or peace so sweet as to be purchased at the price of chains and slavery?—Patrick Henry,1775 , Panel 1, 1955, from Struggle: From the History of the American People, 1954–56, egg tempera on hardboard.  Collection of Harvey and Harvey-Ann Ross.  © 2022 The Jacob and Gwendolyn Knight Lawrence Foundation, Seattle / Artists Rights Society (ARS), New York.

Crystal Bridges Explores the U.S. Constitution Through Art in New Exhibition 'We the People: The Radical Notion of Democracy'

  • ArtfixDaily / July 7th, 2022

Original print of the U.S. Constitution headlines exhibition sponsored by Ken Griffin (who purchased it for $43.2 ...

Read More...
Salvador Dalí (1904–1989), Christ of St John of the Cross, 1951, oil on canvas © CSG CIC Glasgow Museums Collection

Dalí / El Greco Side-by-Side Exhibit Prompts: 'Are They Really Paintings of the Same Thing?'

  • ArtfixDaily / July 6th, 2022

From July 9 to December 4, 2022, The Auckland Project in the U.K. will unite two Spanish masterpieces from British ...

Read More...

ARTFIXdaily Artwire