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International Edition
May 23, 2012 Last Updated: 1:15:PM EDT

Hedge Fund Cheat Bought Hundreds of Artworks

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Hedge Fund Cheat Bought Hundreds of Artworks

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Published: January 26, 2009

An asset list for New York lawyer and accused hedge fund cheat Marc Dreier includes some 150 artworks by such artists as Henri Matisse, Roy Lichtenstein, Mark Rothko, and Andy Warhol, according to Bloomberg.

Dreier, the sole equity partner in Dreier LLP, allegedly "persuaded two unidentified hedge funds to give him more than $100 million by falsely claiming he was selling at a discount notes issued by New York developer Sheldon Solow," according to Bloomberg. Prosecutors have said that he duped "very sophisticated investors" out of $380 million.

Where did the cash go? As part of a request for bail filed on January 15, Dreier supplied a list of assets that includes six homes; several boats; an Aston Martin, two Mercedes, and a convertible BMW; and lots and lots of art.

Among the 177 listed works are prints by John Baldessari, Damien Hirst, and Vija Celmins; silkscreens by Warhol; aquatints by Matisse; sculptures by Tom Otterness; and various works by Richard Prince, Robert Rauschenberg, and Ed Ruscha. The full list can be viewed via the Wall Street Journal's Law Blog.

Dreier's bail was set at $20 million, a sum he says he cannot pay. His assets have been frozen by the government, and his law firm has filed for bankruptcy. He faces up to 20 years in prison for securities and wire fraud.

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