Update On The Dreier $380M Scam Odyssey… Sinking To New Lows Daily

According to people familiar with the matter, Mr. Dreier was attempting to secure tens of millions of dollars from Fortress Investment Group LLC, a New York asset-management firm, by impersonating an Ontario Teachers’ Pension Plan attorney in a sham business transaction. Fortress asked for certain guarantees from the pension plan, which Mr. Dreier represented to be involved in the deal when it wasn’t, these people allege. These people say problems arose for Mr. Dreier when Fortress representatives wanted to meet with pension-plan managers in person.

On Tuesday, Mr. Dreier arranged a meeting in Toronto with Ontario Teachers’ on an unrelated matter, gaining him access to their offices, the people familiar with the matter said. They said that instead of leaving after the meeting, Mr. Dreier waited in the office for the arrival of Howard Steinberg, a Fortress executive, who thought he was meeting with an Ontario Teachers’ lawyer.

The people familiar with the matter allege that Mr. Dreier intercepted the Fortress executive, took him to a conference room, and began a meeting in which he pretended to be Michael Padfield, an in-house lawyer with the pension plan. According to the people familiar with the situation, Mr. Dreier handed out a business card with Mr. Padfield’s name and signed documents as Mr. Padfield. Mr. Padfield couldn’t be reached for comment.

Mr. Steinberg found Mr. Dreier’s behavior unusual, and Mr. Steinberg began asking questions about Mr. Padfield, which led to Mr. Dreier’s ruse being uncovered, according to the people familiar with the matter. Ontario Teachers’ then notified the police, according to a statement from the pension plan. Fortress said it is cooperating with law enforcement.

Read the whole article here.

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