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A Second Arrest in the Drier Fraud
Federal prosecutors have charged a New York man with helping a prominent securities lawyer sell phony promissory notes to fund his lavish lifestyle and growing law practice. And the new suspect is no stranger to the authorities.
Kosta Kovachev, 57, was arraigned today in federal court in Manhattan on one count of wire fraud for his role in a multimillion-dollar swindle involving Marc Dreier, founder and chief executive of Dreier L.L.P., a fast-growing, high-flying nationwide law firm.
Kovachev, who was named in a 2003 investigation of a $28 million Ponzi scheme, stands accused of posing as an officer of the property company whose name appears on the phony I.O.U.'s Drier was selling. He assured skeptical buyers that the notes were real, prosecutors said.
On at least one occasion, prosecutors said, Kovachev brokered the sale of some of the notes for $13.5 million.
by Mark Stein
