Legal News

Largest Law Firm Bankruptcy in History
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Dewey & LeBoeuf LLP, a former global law firm, headquartered in New York City,  is now bankrupt. The giant firm is winding down its business. Dewey & LeBoeuf LLP was known for its corporate, insurance, litigation, tax and its restructuring practices. At the time of the bankruptcy filing, the company employed over 1,000 lawyers in 26 offices around the world. Was the giant too big to fail? Or is the firm outdated, leaving room for more agile firms?

According to Bloomberg News, accused in a 106-count indictment was Davis; Stephen DiCarmine, the former executive director; and Joel Sanders, the ex-chief financial officer of the company. The executives were charged with what was reported to be a “blatant” $200 million fraud and the largest law firm bankruptcy in history. It has also been reported that ex-client relations manager Zachary Warren was also arrested.

  
What
Where


A lawyer for Mr. DiCarmine, Austin Campriello vowed to fight the charges stating that, “It is very easy for a prosecutor to bring an indictment,” and also adding that “…cases like this crumble when an innocent person gets to mount a defense in court. And that is what we will do.”

The Wall Street Journal has reported that a lawyer for Mr. Warren called the charges against his client “a travesty.” Manhattan District Attorney Cyrus R. Vance Jr. commented while announcing the charges that “The defendants are accused of concocting and overseeing a massive effort to cook the books” that “contributed to the collapse of a prestigious international law firm.”

Ernst & Young LLP, which is not accused of any wrongdoing, audited the firm’s financial statements and prepared its tax returns during the years the alleged scheme took place, according to a November filing in bankruptcy court. According to the Wall Street Journal, Ernst & Young found that Dewey & LeBoeuf LLP had accurately presented its financial positions between 2007 and 2010.

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!!




Emails quoted in the SEC complaint show Dewey’s chiefs ridiculing their bookkeepers. After hearing that an Ernst & Young employee who had audited their finances was leaving the company, Mr. Sanders wrote to another Dewey official: “Can you find us another clueless auditor for next year?” The official allegedly responded: “That’s the plan. And it worked perfect this year.”

Richard J. Holwell, a former federal judge in Manhattan commented that “This is a very sad day for the legal profession,” according to the New York Times, he said that, “Dewey is a fabled firm with a lot of great lawyers and a demise of this magnitude is unprecedented.”



Image credit: www.bloomberg.com



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Litigation Attorney

USA-CA-San Francisco

San Francisco office is seeking a mid-level litigation attorney with experience taking/defending dep...

Apply Now

Mid-level Litigation Attorney

USA-CA-San Francisco

San Francisco office is seeking a support attorney with some experience/familiarity with a litigatio...

Apply Now

Trust and Estate Attorney

USA-NY-New York City

Boutique trust and estate firm is seeking an attorney with 7+ years of experience. Candidate should ...

Apply Now

Defense Litigation Attorney

USA-NJ-Atlantic City

Atlantic City office of our client seeks defense litigation attorney with 3-5 years of experience. T...

Apply Now

RELEVANT JOBS

Associate - Insurance Coverage D&O Group

USA-NY-Valhalla

Defense firm seeking junior insurance coverage associate with strong analytical and writing skills f...

Apply now

Hotline & Training Managing Attorney (IMMIGRATION)

USA-NY-New York City

The Hotline & Training Services Managing Attorney will guide, develop, and supervise the Hotline sta...

Apply now

Associate Attorney

USA-CA-Sacramento

A civil plaintiff’s law firm is hiring for an associate attorney, preferably with strong resea...

Apply now

Associate Attorney

USA-TX-San Antonio

One of Texas\'s largest Personal Injury Law firm seeks a highly motivated associate attorney with 3-...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top