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 have found employment! Incidentally, I found the posting on your site. Consider me a satisfied customer.
Barbara B.


Facts

LawCrossing Fact #196: We ensure that all the jobs we list are “real” and currently available.


Location
Cincinnati, OH
Description
Law Student Volunteer, Academic Year Volunteer law clerks assist in the prosecution and defense of ...
Apply now  
Location
Columbus, OH
Description
Law Student Volunteer, Academic Year Volunteer law clerks assist in the prosecution and defense of ...
Apply now  
Location
Dayton, OH
Description
Law Student Volunteer, Academic Year Volunteer law clerks assist in the prosecution and defense of ...
Apply now  
Location
Georgetown, TX
Description
Felony Prosecutor II Duties: Handles a variety of cases, to include all felonies from investigation...
Apply now  
Location
Tulsa, OK
Description
Paralegal The candidate works under the direction of Supervisory Paralegal or Project Supervisor; c...
Apply now  
Location
Honolulu, HI
Description
Law Student Volunteer, Summer The candidate will research and write motions in pending cases; resea...
Apply now  
 

NOW TRENDING ON BCG ATTORNEY SEARCH

MOST POPULAR ARTICLES

Testimonial of the Week

LawCrossing is great at picking up all of the legal listings everywhere across the internet. I could have gone to three different sites to search, but you had them all on your site. That was extremely helpful. LawCrossing is a one stop shop!
  • Eileen Baca-Penner New Mexico
Job of the Day

Tax Counsel (M&A) - NYC

New York City, NY

JURISolutions is partnering with a corporate client in NYC to identify an experienced tax attorney for a permanent in-ho...

Employer: JURISolutions Legal (JSL)

Job Search Tip

NEVER be late to an interview.