December 23, 2008

Marc Dreier, managing partner of the 250-lawyer New York firm Dreier LLP, was sued by Wachovia Corp. for defaulting on at least $9 million in loans, days after he was arrested in Canada on a charge of criminal impersonation.

Wachovia filed its lawsuit today in Manhattan federal court, accusing Dreier of breach of contract and other claims stemming from a revolving credit note and a term note issued to him and his firm

“The borrower has failed to pay Wachovia the sums due under the revolving credit note,” the complaint by the Charlotte, North Carolina-based bank said.

On Dec. 5, Dreier was released on $100,000 bail after spending three days in a Toronto jail for impersonating someone at the Ontario Teachers Pension Plan. The group said in a statement that it alerted police on Dec. 2 after learning that a person visiting its offices was involved in “fraudulent behavior

The plan, which provides retirement benefits to 278,000 teachers, said none of its staff were involved in the fraudulent activity and that it believed none of its funds were involved.

‘John Does'

Dreier is alleged to have pretended to be someone else at a meeting at the pension plan's Toronto offices in connection with a multimillion-dollar deal between Teachers' and Fortress Credit Opportunities, the Toronto Globe and Mail reported last week.

The firm, which Dreier founded in 1996, has offices in New York, Los Angeles and four other U.S. cities.

As requirements of his bail, Dreier can't contact anyone from the Ontario Teachers Pension Fund or Fortress Investment Group, Brendan Crawley, a spokesman at the attorney general's office in Toronto, said in an e-mail. Dreier is also barred from applying for identification, credit cards or other forms of credit not in his own name, Crawley said.

In its complaint, Wachovia also cited individuals and companies identified as “John Does” and “XYZ,” saying they exercised control over Wachovia's collateral.

Source:http://www.bloomberg.com/apps/news