Biglaw

Employee Backs Former Dewey & LeBoeuf Executives Claims
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Dewey and LeBoeuf

Summary: A witness for the defense of Dewey & LeBoeuf former executives pointed the blame on the criminal investigation by the District Attorney’s office for the law firm having to file bankruptcy.

Former executive committee member, Richard Shutran, placed some blame for the quick demise of the law firm on the investigation by New York County District Attorney’s Office. The once 1,400 lawyer firm was in negotiations with other law firms and their lenders when news of the investigation broke out, the negotiations ended within days.

  
What
Where


Shutran is the most senior former firm employee to testify in the case at this time. He was a member of the five-member “office of the chair” to replace Davis. He testified that their lenders were willing to extend their credit line until the investigation.

The trial for the three former firm execs has been a blame game between prosecution and defense attorneys. Former chair Steven Davis, executive director Stephen DiCarmine, and CFO Joel Sanders are being accused of lying to lenders and investors about the finances of the law firm as well as accounting fraud. Prosecutors claim that they knew the firm would never be able to pay off its debts. The defendants claim that the departure of several partners and the criminal investigation is to blame for the failure of Dewey & LeBouef.

Although Shutran claimed to not know about the firm’s finances, he was a key player in negotiating terms with JPMorgan Chase Bank, making it possible for the firm to default by reducing their number of partners, and by signing off on bond offerings. He claims he did not think that these actions would make the firm collapse. The prosecution went on to show emails from Shutran asking clients to back date checks so they could be put on the books for the previous year.

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!!




The case is four weeks in but the prosecution’s case is expected to go another four to five months. The slow progress of the case is trying everyone’s nerves and patience.

Source: http://www.americanlawyer.com/top-stories/id=1202730873272/ExDewey-Senior-Partner-Says-Probe-News-Scuttled-Merger-Deal



Photo: reuters.com



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Mid-level Restructuring Attorney with bankruptcy experience

USA-DC-Washington

Washington, D.C. office of our client seeks mid-level restructuring attorney with 4-6 years of exper...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Attorney with 3-5 years of civil litigation experience

USA-IN-Merrillville

Merrillville office of our client seeks attorney with preferably 3-5 years of civil litigation exper...

Apply Now

RELEVANT JOBS

Civil & Business Litigation / Transactional Attorney

USA-CA-Clovis

Law firm with primary emphasis in Business & Civil Litigation and transactional work, seeks confiden...

Apply now

LITIGATION ATTORNEY

USA-CA-Emeryville

Boutique East Bay litigation defense firm is seeking a junior to mid-level attorney. Candidates for ...

Apply now

Family Law Paralegal

USA-NJ-Parsippany

The right person for this job will grasp basic and complex divorce and family law issues, have stron...

Apply now

Products Liability & Mass Tort Litigation Associate

USA-GA-Atlanta

The candidate must have 1- 5 years of civil litigation experience, preferably with some background i...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top