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Dreier firm in "chaos" after arrest

The New York law firm of Marc S Dreier is in "chaos" following his arrest for hedge fund fraud, with millions of dollars worth of assets missing, defaulting health insurance and the vast majority of its 250 attorneys facing unemployment, it has been reported.

According to the New York Times, lawyers at the company that was almost singularly controlled by Mr Dreier say bills have not been paid for months and it is unable to pay $2.6 million in wages that are due today (December 15th).

Mr Dreier is currently being held without bail, charged with what the Securities and Exchange Commission called an "elaborate" deception to sell fake promissory notes to a number of investors. He faces similar charges in Canada.

The newspaper said Mr Dreier had a jet-set lifestyle complete with a luxury Manhattan apartment, several sports cars and a 120-foot yacht with its own Jacuzzi and ten-man crew.

His law firm's headquarters on Park Avenue was adorned with between $30 and $40 million dollars worth of artwork, including pieces by Picasso and Andy Warhol.

Since Mr Dreier's arrest, the publication said someone "not affiliated with the firm" has removed several items and their whereabouts are currently unknown.