A former enforcement lawyer for the SEC finally admitted he didn’t learn from his old job.
Robert Miller pleaded guilty to one count of both conspiracy and securities fraud for helping crooked lawyer Marc Dreier (pictured here) sell his hundreds of millions of dollars worth of fake promissory notes to individuals and hedge funds.
According to the U.S. Attorney for New York’s Southern District, Miller, 52, of Englewood, NJ, helped sell a $44.7 million fictitious promissory note to two hedge funds by impersonating a representative of the Canadian pension plan.
Here’s a taste from the U.S. Attorney of what Miller did:
As part of that scheme, in November 2008, DREIER offered to sell a New York-based hedge fund a promissory note with a face value of $44.7 million. DREIER falsely claimed that the promissory note was held by a hedge fund located in Iceland, was guaranteed by a pension plan located in Canada, and was issued by a company in Canada.
At about that same time, as part of his effort to sell the note, DREIER contacted MILLER and asked him to impersonate a representative of the Canadian pension plan during a telephone call with the New York hedge fund. DREIER offered to pay MILLER $100,000, gave him an outline of the proposed transaction, a copy of the deal documents, the name of the person MILLER was to impersonate, a fictitious email address where that person could be contacted, an annual report of the Canadian issuer, and detailed notes of what MILLER was to say during the call.
The following day, at DREIER’s offices, MILLER received a call from representatives of the hedge fund on a cell phone DREIER gave him with a Canadian area code and phone number. During that call, MILLER impersonated a representative of the Canadian pension plan and discussed the guarantee that the pension plan had supposedly issued for the $44.7 million note. Shortly thereafter, DREIER wired $100,000 into MILLER’s bank account.
Here’s the full filing:
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