A prominent Manhattan law firm scandalized by charges that its founder masterminded a massive fraud will seek bankruptcy protection, according to a receiver appointed to run the firm.
In a letter to a federal judge, the receiver also predicted founder Marc Dreier will soon seek protection too.
The Securities and Exchange Commission has been notified "of my intention to seek bankruptcy protection, and I believe Mr. Dreier will file a personal petition for bankruptcy in the future," the receiver, Mark Pomerantz, said in the letter dated Dec. 11.
The mid-size firm, Dreier LLP, has represented celebrities including retired football star Michael Strahan and former News Corp. publishing executive Judith Regan.
Dreier's lawyer has said his client would cooperate fully with the court-appointed receiver overseeing his assets.
The 58-year-old defendant was jailed without bail last week after being charged in a criminal complaint and by the SEC in the alleged sale of fraudulent promissory notes.
Prosecutors accused Dreier of posing as if he were peddling heavily discounted investments in a New York City real estate development company because original investors, damaged by the world's financial crisis, were backing out.
