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.

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 #75: Those who use the “Chat Live” feature will be able to receive valuable information that can help them in their searches for jobs.


Date
Location
Job Title
May 17, 16
US-DC-Washington
Legal Staff - Contract in Washington, DC
In-House, Min 1 yrs required
Paralegal/Legal Assistant III DUTIES: Assist prosecutors in conducting investigati...
May 22, 16
US-OR-Burns
Criminal Attorney / Litigation Attorney in Burns, OR
Government,
Temporary Deputy District Attorney The candidate will work under the direct supervis...
May 22, 16
US-TX-San Angelo
Litigation Attorney in San Angelo, TX
Government, Min 1 yrs required
Attorney I The candidate performs new case intake and screening, including determini...
Job of the Day

Corporate Attorney in Arlington, VA

USA-Arlington

Assistant General Counsel, Brokerage Legal Department Duties: Providing legal advice in support of retail broker-deal...

Employer: ETRADE Financial Corporation

Job Search Tip

Important interview props-paper and pen. On the pad of paper include your five interview questions along with any major points about your background you want to cover in the interview.