Dreier Trustee Inks $55M Settlement With Hedge Fund

Law360, New York (June 22, 2011, 5:05 PM EDT) -- A New York bankruptcy court approved a $55 million settlement Tuesday between the trustee overseeing the liquidation of Dreier LLP and a hedge fund that allegedly lost $100 million to a loan fraud scheme perpetrated by the firm's imprisoned founder.

The deal resolves claims that two Fortress Investment Group LLC subsidiaries asserted against Dreier relating to a series of bogus loans allegedly brokered by attorney Marc S. Dreier. Under terms of the settlement, Fortress' claims will be allowed as unsecured claims under the defunct firm's Chapter...
To view the full article, register now.