Marc Dreier, the New York attorney arrested earlier this month and accused of a bizarre $380 million swindle, did not act alone.
Prosecutors arrested an alleged accomplice Monday night. Kosta Kovachev, a former broker registered with NASD, was charged with aiding Dreier in the sale of false promissory notes to unwitting hedge funds.
Kovachev allegedly posed as an executive of a New York real estate developer as Dreier tried to convince investors to purchase fake notes purportedly issued by that developer, prosecutors say. Court documents don't identify the company by name, but it is widely believed to be Solow Realty, once one of Dreier's biggest clients.
Dreier and Kovachev staged a meeting with one hedge fund investor in October at the offices of the developer, during which Kovachev acted as the real estate company's controller, according to the complaint by the U.S. attorney in Manhattan that was unsealed Tuesday. Kovachev answered the hedge fund employees' questions about financial records Dreier had produced. In the prosecution's case against Dreier, one of the allegations is that he fabricated financial statements as part of his scheme.
No comments:
Post a Comment