{"id":4700,"date":"2009-01-06T09:02:25","date_gmt":"2009-01-06T09:02:25","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2009\/01\/former_broker_charged_with_con"},"modified":"2022-03-30T10:12:44","modified_gmt":"2022-03-30T15:12:44","slug":"former-broker-charged-with-con","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/former-broker-charged-with-con\/","title":{"rendered":"Former Broker Charged with Conspiracy to Commit Wire Fraud Following Allegations He Helped Law Firm Founder Mark Dreier Defraud Hedge Funds Through Ponzi Scam"},"content":{"rendered":"

\t\t\t\tFormer broker Kosta Kovachev has been charged with conspiracy to commit wire fraud<\/a> for his alleged role in assisting New York law firm founder Marc Dreier with an alleged $380 million Ponzi scheme<\/a>. Dreier is the founder of Dreier LLP. He was arrested last month on charges he convinced two hedge funds to give him over $100 million after he made false claims that he was selling discounted notes issued by Sheldon Solow, a New York developer.<\/p>\n

According to prosecutors, Kovachev posed as the controller of Solow Realty for Dreier-even though he never worked for the company-after a hedge fund employee asked to meet with a Solow representative after the promissory notes were not paid back on time. Authorities are also accusing Kovachev of helping Dreier sell fake notes, totaling $113.5 million, to two other hedge funds last October, as well as posing as Solow’s CEO during a conference call to talk about financial statements. If convicted, Kovachev could spend up to five years in prison and have to pay $250,000 or twice the gross loss or gain as a result of his offense-whichever is greater. <\/p>\n

At Kovachev’s bail hearing, Assistant US Attorney Jonathan Streeter says Dreier paid people that took part in “impersonations” for him up to $100,000 a phone call. Drier LLP filed for bankruptcy last December.<\/p>\n

In 2006, the Securities and Exchange Commission filed a civil suit against Kovachev accusing him and several others of engaging in a different Ponzi scam and defrauding over 600 investors of over $28 million. Kovachev, who was accused of selling unregistered securities that were structured as hotel timeshare rental interests, was ordered to pay $350,000. <\/p>\n

Dreier Case Leads to Charges Against Broker Kovachev<\/a>, Bloomberg.com, January 5, 2008
\nEx-Broker Charged With Helping New York Lawyer in Elaborate Fraud Scheme<\/a>, New York Times, December 23, 2008 <\/p>\n

Related Web Resources:<\/strong><\/p>\n

SEC Charges N.Y. Attorney Marc S. Dreier With Multi-Million Dollar Fraud<\/a>, SEC, December 8, 2008
\n“Ponzi” Schemes<\/a>, SEC.gov Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Former broker Kosta Kovachev has been charged with conspiracy to commit wire fraud for his alleged role in assisting New York law firm founder Marc Dreier with an alleged $380 million Ponzi scheme. Dreier is the founder of Dreier LLP. 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