Prosecutor says attorney with office in Albany lost $380M in hedge fund fraud

A U.S. prosecutor now estimates losses of $380 million in an alleged hedge fund fraud linked to a prominent New York attorney.

Magistrate Judge Douglas Eaton denied bail and ordered detention Thursday for Marc Dreier.

Prosecutor Jonathan Streeter called Dreier a "Houdini of impersonation." He was arrested Sunday in what federal authorities called a "stunning, brazen fraud."

Dreier's lawyer, Gerald Shargel, calls the case "very complicated." He sought $10 million bail.

Dreier LLP partner Joel Chernov says in court papers that many lawyers have left the firm, rent is overdue and BlackBerry service is being terminated. He says $27 million appears to be missing from escrow accounts.

Dreier also is charged in Toronto with impersonation in connection with the attempted sale of $45 million of notes to a hedge fund.

(Copyright 2008 by The Associated Press. All Rights Reserved.)