May 28 (Bloomberg) -- Disgraced lawyer Marc S. Dreier’s luxury Manhattan condominium, where he is now confined under armed guard, will be put up for auction July 21 as part of his Chapter 7 bankruptcy case.

The four-bedroom, 3,000 square-foot apartment at One Beacon Court in East Midtown will be auctioned by the U.S. Bankruptcy Court, Southern District of New York, according to a listing on the Web site of auctioneer David R. Maltz & Co. in Plainview, New York. Dreier paid $10.4 million for the unit in July 2007.

The founder of the Dreier LLP law firm pleaded guilty this month to charges of money laundering, conspiracy, securities fraud and wire fraud in a scheme that cost victims $400 million, prosecutors alleged. Dreier had no plea agreement and faces a possible life sentence. He is confined to his apartment as a condition of bail while he awaits sentencing set for July 13.

Dreier’s sister, his mother and an unnamed friend are paying for the guards, his lawyer, Gerald Shargel said earlier this month. The cost is $50,000 per month, said Philip Scala, chief executive officer of Pathfinder Consultants International, the company that is supplying them.

Dreier signed a document authorizing the guards to use lethal force to stop him if he tries to flee, according to court filings.

Shargel didn’t return a telephone message seeking comment.

The lawyer lives in a high-rise apartment building at 151 East 58th St. He bought the unit under the name MSD Beacon LLC, city property records show. It has a 738 square-foot terrace, five bathrooms and monthly common charges of $4,180, according to the auction listing.

The 55-story building, designed by architect Cesar Pelli, has a fitness center with swimming pool and sundeck, a business center, children’s playroom, concierge and valet parking. It’s also the headquarters of Bloomberg LP, parent of Bloomberg News.

Sales Listings

A 3,058 square-foot apartment in the building that was listed for $14.4 million went into contract this week, according to Streeteasy.com, a real estate listing service.

There are 12 active sales listings in the Beacon Court building, according to Streeteasy. Eight have had their prices cut. A 3,226-square foot condo on the 32nd floor is being offered for $15.35 million, a 15 percent discount from the initial list price in February 2008.

Dreier’s individual Chapter 7 case is 09 10371, U.S. Bankruptcy Court, Southern District New York (Manhattan).

To contact the reporter on this story: Oshrat Carmiel in New York at ocarmiel1@bloomberg.net.

Last Updated: May 28, 2009 17:02 EDT