Steven J. Reisman, a partner in New York’s Curtis, Mallet-Prevost, Colt & Mosle, has been appointed to investigate allegations that 360networks, a Seattle-based provider of communications services, and its creditors are owed up to $38.5 million in funds from the now defunct Dreier LLP.
Reisman was appointed by Judge Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York. He will be assisted by other Curtis lawyers, including Lynn P. Harrison III, T. Barry Kingham and Jerrold Bregman.
The funds in question should have been in a Drier client escrow account. The Dreier firm had accumulated the roughly $38.5 million in cash from prosecuting actions that it brought as counsel to the committee appointed under 360networks’ Chapter 11 plan. The funds were to be shared among the reorganized telecommunications company and its creditors pursuant to the Chapter 11 plan.
Dreier LLP collapsed after Marc Dreier, the firm’s founder and managing partner, was arrested in Toronto in December for allegedly impersonating another lawyer. He was arrested again in New York upon his return on securities and wire fraud charges that prosecutors said could have cost investors $380 million.
Reisman is co-chairman of Curtis’ restructuring and insolvency practice.