High-Profile Attorney Dreier Indicted

ABC News' Richard Esposito reports: High-profile New York lawyer Marc Dreier was indicted Thursday by a federal grand jury on charges related to allegedly scamming investors by pawning of worthless debt instruments as real.

Dreier was indicted in Manhattan on charges of securities fraud that allegedly cost investors more than $400 million in losses, prosecutors said.

Dreier, 58, was the founder and managing partner of the Dreier LLP law firm. He has been jailed since his Dec. 7 arrest.

Dreier lived life in the fast lane, fueling his expensive tastes allegedly, in part, with the proceeds from his scheme, and hobnobbing with millionaires.

The Harvard-educated Dreier was indicted on charges "stemming from an alleged fraud against various investment funds and misappropriation of law firm client funds," acting U.S. Attorney for the Southern District of New York Lev Dassin said in a statement.

"The indictment was not unexpected and there were no surprises," Drier's attorney Gerald Shargel told Reuters News.

The indictment charges that from 2004 through December last year, Dreier conspired to sell fake notes supposedly issued by a New York real estate developer and by a Canadian pension plan.  It seeks forfeiture of the proceeds of the fraud, as well as property including real estate, a yacht and art works.

If convicted, Dreier faces up to 20 years in prison as well as stiff fines. But he has been unable to meet bail conditions that include $20 million and four co-signers.

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