Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Son of Fraudster Marc Dreier Drops Dorm-Room Spat Suit

July 17 (Bloomberg) -- Spencer Dreier, whose father, Marc Dreier, is serving a 20-year sentence for cheating hedge funds out of $400 million, agreed with an ex-roommate to drop mutual claims of assault and defamation tied to a dorm-room fight.

Dreier sued Ben Clorite, his former roommate, in May 2009 for defamation, battery and emotional distress. After a fight in their room, Clorite posted a libelous online allegation that Dreier was obstructing the investigation into his father’s crimes and trying to destroy evidence, Spencer Dreier claimed.

After jury selection and a week of a trial in federal court in Manhattan that included testimony by both men, they agreed to drop the case yesterday, Clorite’s lawyer, Jerome Coleman, said today in a phone interview.

“The parties have amicably reached a confidential settlement agreement that they find has resolved the claims underlying this lawsuit favorably,” Coleman read from a joint statement by the two men. He declined to comment further. Dreier, who represented himself, declined to comment.

The elder Dreier pleaded guilty in May 2009 in Manhattan federal court to money laundering, conspiracy, securities fraud and wire fraud. He defrauded hedge funds in an effort to prop up his now-defunct 250-lawyer New York firm, Dreier LLP.

Spencer Dreier sought more than $4 million from Clorite in the suit. Clorite countersued for assault and defamation, alleging Dreier lied to officials of their school, Union College in Schenectady, New York, in an effort to get him expelled. Both men left the college in the spring of 2009, in their freshman year.

The case is Dreier v. Clorite, 09-07553, U.S. District Court for the Southern District of New York (Manhattan).

To contact the reporter on this story: Emily Grannis in New York at egrannis@bloomberg.net

To contact the editor responsible for Michael Hytha at mhytha@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.