Marc Dreier's Big Break

For four days after his Dec. 7 arrest, Dreier was the biggest white-collar crook in the country; then Madoff was arrested on Dec. 11. Madoff’s Ponzi scheme may have exceeded $50 billion, conned more than 8,000 investors, and flourished for at least two decades, making Dreier seem like small potatoes.

Dreier’s lawyer Gerald Shargel appeared to have convinced the judge that Dreier had helped investigators, a claim disputed heartily by the prosecution. Shargel also argued that a heavy sentence would do nothing to deter other white-collar criminals, a claim the judge quibbled with, but essentially accepted.

Rakoff said he was moved by a letter Dreier wrote last week, apologizing and seeking leniency. In court Monday, Dreier’s apology—which he said he hoped would give his victims “some small satisfaction”—took 2 minutes 45 seconds, about half the time Madoff’s act of contrition.

Saying he did not believe any defendant is “beyond redemption,” Rakoff also ordered alcoholism treatment thrown in for Dreier. With that program and time reduced for good behavior, Dreier could be back on the street at age 75 to enjoy time with his son and daughter, each of whom wrote letters to the judge. So did Dreier’s mother, giving him three more letters for mercy than Madoff got.

Perhaps sensing that he will be criticized as being soft, Rakoff said: “The sentence I will impose will not minimize the magnitude of the crime.” Shargel said Dreier will not appeal the sentence, which he requested be served at the minimum-security facility in Allenwood, Pennsylvania.

For the last few months, Dreier has been living in his $7 million East Side apartment under house arrest, where—judging by his tanned face in court—he must have been sunning himself on his 34th-floor terrace at One Beacon Court.

After the sentencing, he was handcuffed and his suit-coat, belt, and custom-made pink and blue patterned silk tie were handed to his legal team as he was led off to the Metropolitan Correctional Center. Once again, he is a ship passing in the night with Madoff being moved from there today, reportedly to a federal prison in Butner, N.C.

Still, unlike Madoff so far, the public will see more of Dreier. While under house arrest, the narcissistic criminal granted exclusive interviews to 60 Minutes and Vanity Fair for the fall season.

Allan Dodds Frank is a business investigative correspondent who specializes in white-collar crime. He also is president of the Overseas Press Club of America.