Biglaw

New Allegations Made Against Dewey & LeBoeuf Executives
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

New allegations have been brought against two former executives from Dewey & LeBoeuf LLP by the bankruptcy trustee who is unwinding the defunct firm, according to The Wall Street Journal. The lawsuit asks for the return of $21.8 million the two executives were paid as the firm moved further into insolvency.

The complaint was filed on Monday in U.S. Bankruptcy Court in Manhattan. It names Stephen DiCarmine, former executive director and Joel Sanders, former chief financial officer. This complaint was filed six months after the men were first sued by Dewey trustee Alan Jacobs.

  
What
Where


The updated lawsuit includes civil and criminal allegations against the men in March by the district attorney’s office for Manhattan and the Securities and Exchange Commission. The charges include that the men used fraudulent accounting practices to cover up the state of the firm’s finances before it collapsed in 2012. Also charged are former chair Steven Davis and a low-level employee. All four of them have denied any wrongdoing in the firm’s collapse.

The lawsuit also makes mention of plea agreements that have been reached with seven former employees of the law firm. They admitted to carrying out plans that overstated the revenue of the firm, covered up cash shortages and hid losses.

According to the lawsuit, DiCarmine and Sanders were “acutely aware of Dewey’s deteriorating financial condition” and “went to considerable lengths to ensure that their own financial well-being was not disrupted.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




On Tuesday, an attorney for Sanders, Ned Bassen, said, “the allegations are palpably wrong…and the evidence will show that [Mr. Sanders] continuously urged the law firm not to spend money they did not have, not to increase their credit, not to draw down on their line of credit with the banks–and was constantly rebuffed.”

DiCarmine’s attorney, Austin Campriello, said, “No one was more faithful and loyal to Dewey & LeBoeuf than Steve DiCarmine. And no one worked harder to make the firm a success.”



The lawsuit claims that DiCarmine and Sanders were compensated $21.8 million under the contracts.



 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Insurance Defense Trial Attorney/ Senior Counsel

USA-CA-San Francisco

Job description Trial Attorney - Personal Injury Defense Full Job Description Hickey Smith ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top