Former Dewey Partner Sues Barclays over Fraudulent Loan Claims

On Tuesday, Londell McMillan, the former head of Dewey’s entertainment, media and sports group, sued Barclays Bank in the US District Court in New York over a loan which McMillan says he did not take, and that the loan agreement was fraudulent. McMillan has been sued by Barclays Bank in the United Kingdom for defaulting on the said loan, to which he responded with his own lawsuit filed in the US.

McMillan asked U.S District Judge Andrew Carter to rescind the loan agreement because it was entirely a “fabrication.”

Barclays ‘s your McMillan last December in the UK in an attempt to recoup $540,000 it claims McMillan owes the bank for a loan he took out on June 24, 2010, for financing his capital contribution to Dewey.

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However, in court papers, McMillan declared that he did not enroll in the Barclays’ loan and that he “has no recollection of signing any such (loan agreement.”

McMillan also submitted to the federal court that he had no reason to sign on the loan program on June 24, as because, on June 22, Joel Sanders, the CFO of Dewey had sent an email to him assuring that his requirement of capital obligations amounting to $540,000 had been taken care of.

The lawsuit mentioned that McMillan had already notified leaders of Dewey of his plans to leave the establishment prior to June 22, and that he had told the firm in March that the firm already owed him an amount close to $1 million in compensation for the last three years, and he had decided to wind up his practice at Dewey.

In response, the Dewey CFO had written back to him with a tally of accounts and had submitted the firm was reducing its debt to him by $540,000 to cover his capital contributions. McMillan told the court that the email from Sanders mentioned, “Your capital has already been deducted and processed as it was way overdue and you never processed the loan documents.”

As Dewey had submitted that McMillan’s capital contribution was being adjusted against the compensation the law firm owed him, and the email also admitted that McMillan had not “processed the loan documents,” it was difficult to see how Barclays sued him over the loan, but maybe it’s the bank’s lawyers have something up their sleeves.

Posted by Scott on February 20, 2013. Filed under Law Firm News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.