A federal judge has approved several settlement agreements between the government, the trustees charged with liquidating the estate of disbarred attorney Marc S. Dreier and his defunct 250-attorney law firm, and various other parties affected by his massive fraud.
Noting that “an under-appreciated evil of substantial frauds like those of Marc Dreier is how they pit their victims against one another,” Southern District Judge Jed S. Rakoff ruled Friday that a coordination agreement, which prevents the federal government from going after the proceeds of avoidance actions brought by Sheila Gowan, the trustee for Dreier LLP, was “reasonable and in the best interests of the victims collectively.”
