Dreier Accomplice Miller Granted Two Years’ Probation

July 7 (Bloomberg) -- Robert L. Miller, who once worked as a lawyer with the U.S. Securities and Exchange Commission, was sentenced to two years’ probation for helping New York law firm founder Marc Dreier defraud hedge funds.

U.S. District Judge Kimba Wood imposed the sentence today in New York.

Miller pleaded guilty to impersonating a representative of a Canadian pension plan and an Icelandic hedge fund official as part of Dreier’s scheme to sell a phony $44.7 million note. Miller said Dreier paid him $100,000.

The attorney “began spiraling down into the abyss of alcoholism and mental illness” before agreeing to help Dreier, Miller’s lawyers said in court papers. He has cooperated with prosecutors, his lawyers said.

Dreier is serving a 20-year sentence in federal prison in Minnesota. He admitted selling at least $400 million in phony notes to hedge funds to pay for his lavish lifestyle and prop up his now-defunct 250-lawyer New York firm, Dreier LLP.

Another admitted Dreier accomplice, former broker Kosta Kovachev, was sentenced to 46 months in prison in March.

The case is U.S. v. Miller, 09-01077, and the Dreier case is U.S. v. Dreier, 09-00085, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in U.S. District Court in New York at rvanvoris@bloomberg.net.

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.

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