It is expected that three former top executives from defunct law firm Dewey & LeBoeuf will be charged Thursday with misleading other lawyers and lenders about the firm’s financial health, according to the New York Times.
Cyrus Vance Jr., the Manhattan District Attorney, will announce the criminal charges on Thursday. They will be against Steven H. Davis, former chairman; Stephen DiCarmine, former chief executive; and Joel Sanders, former chief financial officer.
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The firm filed for bankruptcy protection in 2012. Its collapse shut its 26 worldwide offices and forced 1,300 people out of jobs.
Along with the criminal charges, the Securities and Exchange Commission is expected to file a civil action in relation to misrepresentations of the firm’s 2010 sale of $125 million in debt notes in order to refinance bank debt.
Both Vance and the SEC declined comment on the issue.
The current employer of Sanders, Greenspoon Marder, issued a statement on Sanders’ behalf:
“During his tenure with Greenspoon Marder, Joel Sanders has demonstrated his honesty, integrity and dedication to the firm. We will continue to support Joel through this ordeal and look forward to a successful outcome.”
It seems as though a group of off-color emails about the firm’s health are the key reasons for the indictments. These messages were released after the firm collapsed.
The document below is from Jacob Gershman from the Wall Street Journal.
