Former Dewey & LeBoeuf Leaders Indicted for Fraud

11 Views
On Thursday, in a historic move over a failed law firm, Manhattan District Attorney Cyrus Vance Jr. charged former Dewey & LeBoeuf chairman Steven Davis, DiCarmine, and Sanders with a 106-count indictment. Charges against each included dozens of felonies including falsification of business records, grand larceny and securities fraud. Zachary Warren, the former client-relation manager of the failed law firm was also charged with initiating the fraud and helping to cover up its early stages.

All four men pleaded not guilty in the Manhattan criminal court. They were taken before the court in handcuffs, which is rare, and bail was set for them. The highest bail amount was set at $2 million for Davis, DiCarmine and Sanders. Davis, who currently lives in London, and agreed to travel restrictions. The lowest bail was set at $200,000 for Warren.



During the hearing, Manhattan Assistant District Attorney Peirce Moser told the judge that the men had "acted out of a shocking mix of greed and hubris."

Vance said at a press conference that the Dewey's top management directed the law firm's finance department to engage in "blatant accounting fraud and deceit," and the finance officials of the firm provided false information to the law firm's auditor - Ernst & Young. Vance said seven people, whose names have not been disclosed, have already pleaded guilty in the case and the investigation continues.

Dewey & LeBoeuf, formed by the merger of two New York law firms, Dewey Ballantine and LeBoeuf, Lamb, Greene & MacRae, once had 1400 lawyers on its rolls, and its collapse was the largest failure of a U.S. law firm. Thousands of jobs were lost and lenders, investors and banks lost hundreds of millions of dollars. The failure of the firm is blamed upon the Rainmaker's Ponzi cooked up by the law firm management where Rainmakers were laterally hired from other firms with huge promises, and the promises to earlier hires kept by paying out from partner contributions of those who joined later.

Steven Davis had agreed to pay $511,145 in April 2012 as part of a settlement releasing him from mismanagement claims by the trustee of the Dewey estate and had kept out of the public eye since then. However, the criminal investigation ongoing at the time has led to the present indictment.

Dewey & LeBoeuf, L.L.P.

    


Featured Testimonials

I had a great experience using LawCrossing. I found some listings which I could not find anywhere else. Amazing site!
Melinda


Facts

LawCrossing Fact #184: With more than 30 Crossing websites, why would you need to search non-exclusive sites?


Location
Prineville, OR
Description
Deputy District Attorney I Duties: The candidate will perform intake procedures which includes revi...
Apply now  
Location
Klamath Falls, OR
Description
Deputy District Attorney Responsibilities : The candidate will review police reports and requests f...
Apply now  
Location
Washington, DC
Description
Senior Paralegal Duties: Transferring files between software. Redact documents. Creating timelines,...
Apply now  
Location
Newport, OR
Description
Deputy District Attorney II Duties: The candidate will performs professional legal work and is the ...
Apply now  
 

NOW TRENDING ON BCG ATTORNEY SEARCH

MOST POPULAR ARTICLES

Testimonial of the Week

I came back to LawCrossing to search through the listings in my new job search because I had been able to get my last 2 jobs through using the site. I love the search capacity and filters. This is a very valuable service.
  • Jennifer Guidea Bloomfield, NJ
Job of the Day

Immigration Associate Attorney

North Miami, FL

The Law Offices of Kenneth Panzer is seeking to hire an experienced associate attorney to join the firm. Candidates shou...

Employer: The Law Offices of Kenneth Panzer

Job Search Tip

Caveat emptor-let the buyer beware. If you take a job and later find out the company's in trouble, you have only yourself to blame. Look before you leap.