NEW YORK, Jan 27 (Reuters) - The bankruptcy trustee overseeing the liquidation of law firm Dreier LLP has filed an involuntary bankruptcy petition for Marc Dreier, the firm’s sole equity partner, court papers show.
Sheila Gowan, the trustee overseeing the liquidation of the law firm, filed the Chapter 7 involuntary bankruptcy petition for Dreier on Monday, the court papers showed.
Dreier, who was arrested in New York in December, is accused of scheming to market fake debt from a New York-based real estate developer to hedge funds and other institutional investors.
Wachovia Bank National Association and the bankruptcy estate of 360networks Inc also joined Gowan in the involuntary petition as creditors. The three said they are owed about $88.5 million.
Under U.S. law, creditors may begin an involuntary bankruptcy case to force a debtor to confront his creditors. The debtor has 20 days to object to the filing. (Reporting by Emily Chasan and Santosh Nadgir in Bangalore; Editing by Ted Kerr)