Broker arrested in fraud case
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Prosecutors have announced a second arrest in the fraud case facing a prominent Manhattan lawyer accused of duping hedge funds into making bogus investments.
Broker Kosta Kovachev was charged with wire fraud in a criminal complaint unsealed in federal court in Manhattan.
The complaint accused Kovachev of posing as the comptroller for a developer whose offices were used to persuade a hedge fund to buy a worthless investment.
This month lawyer Marc Dreier was accused of causing losses of at least $380 million by scamming hedge funds into buying the securities. He remains jailed without bail.
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