Bloomberg News

Son of Fraudster Dreier Drops Dorm-Room Suit

July 17, 2012

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.


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