Calm down, peasants...
A prominent attorney was ordered jailed without bail Thursday after a federal prosecutor estimated losses of $380 million in an alleged hedge fund fraud.
This is the era of worthless paper money, where countless millions and billions of paper assets have evaporated into nothing, driven into larger and larger piles of nothing at all by greed, incompetence, and a fundamental lack of oversight. It reflects the culmination of a failed idea--the self-regulating market. I'm sad to see it die like this. I thought it would take hold and thrive. It has not.
Magistrate Judge Douglas Eaton denied bail for Marc Dreier, whom prosecutor Jonathan Streeter called a "Houdini of impersonation."
Streeter said Dreier was "in a desperate situation and the only way out of the desperate situation is to flee."
None of the little people were hurt here, you see...
The scandal has stunned Dreier LLP, a mid-size law firm that has represented celebrities, including retired football star Michael Strahan and former News Corp. publishing executive Judith Regan.
Dreier LLP partner Joel Chernov said in court papers that many lawyers have left the firm, rent is overdue and BlackBerry service is being terminated. He says $27 million appears to be missing from the firm's escrow accounts.
Dreier also is charged in Toronto with impersonation in connection with the attempted sale of $45 million of notes to a hedge fund.
Streeter cited "over $380 million actual loss."
"There's a large amount of money completely unaccounted for," said Streeter, who did not elaborate further.
Any country where a man can steal $380 million is a banana republic.