Victim of Ponzi-schemer Dreier to get his Warhols, Rothkos
Convicted Ponzi schemer Marc Dreier is being forced to turn over pieces of his multimillion-dollar art collection, including works by Andy Warhol, Mark Rothko, Roy Lichtenstein and Damien Hirst, to one of his victims, the office of the U.S. Attorney for the Southern District of New York said Monday.
In a statement, Preet Bharara said that the U.S. Marshals had transferred 18 seized works to one of Dreier's victims.
Dreier had displayed the artwork in his home. He gave the victim a security interest in the collection, then valued at over $30 million, supposedly to secure the payment to the victim on promissory notes that he had secretly forged and that had a face value of more than $110 million.
The same person previously had transferred $1.65 million in forfeited funds to the government, which the U.S. Attorney's Office will seek to make available to other victims of Dreier's fraud.
Dreier was sentenced to 20 years in federal prison in 2009 for a Ponzi-style investment fraud. He is scheduled to be released in 2026.
He launched the scheme in 2004, and Dreier was arrested when Bernard Madoff confessed to his fraud. He pleaded guilty to eight charges of fraud, including securities fraud, wire fraud and money laundering in a scheme to sell $700 million in fictitious promissory notes.
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Dozens of pieces from his art collection were previously seized and sold at auction.
—By CNBC's Matt Twomey. Follow him on Twitter @Matt_Twomey