|
 The records offer a fresh peek into the government's case against
top executives at the defunct elite international law firm and how
key witnesses might testify against them.
The employees, who range from Dewey's controller to its billing
director, agreed to cooperate with prosecutors who have targeted the
firm's top management.
Dewey's former chairman, Steven Davis, 60, Executive Director
Stephen DiCarmine, 57, and Chief Financial Officer Joel Sanders, 55,
were charged March 6 with taking part in a scheme to cheat banks and
investors as they struggled unsuccessfully to keep the law firm
alive.
Dewey & LeBoeuf collapsed in 2012, the largest U.S. law firm to file
for bankruptcy. If convicted of the top counts against them, the
executives each face up to 25 years behind bars.
Prosecutors have accused the executives of using accounting fraud so
that Dewey & LeBoeuf could get and keep more than $200 million in
financing.
The firm's lenders included JPMorgan Chase & Co, Citigroup Inc's
private banking unit, Bank of America Corp and HSBC Holdings Plc.
Dewey & LeBoeuf also had a $150 million bond offering in 2010.
The court records offer detailed admissions of wrongdoing but hazy
accounts of the direct evidence prosecutors have against the three
executives and Zachary Warren, 29, a lower-level employee also
charged in the case.
Thomas Mullikin, 53, the controller, said he had only infrequent
contact with Sanders, "even less" frequent with DiCarmine, and no
contact with Davis.
"I never met the firm's chairman," Mullikin said in his formal
admission to wrongdoing.
The controller pleaded guilty to a felony charge known as scheme to
defraud. If he cooperates, prosecutors said they would recommend a
jail sentence of five months.
The other staffers who pleaded guilty include Budget Director Ilya
Alter, 38, Revenue Support Director Dianne Cascino 55, Accounting
Manager Jyhjing "Victoria" Harrington, 42, Partner Relations
Specialist David Rodriguez, 39, and Billing Director Lourdes
Rodriguez, 43.
Their crimes range from falsifying business records to misdemeanor
and felony counts of scheme to defraud.
[to top of second column] |
Prosecutors said in the agreements they would recommend no jail time
for the five, if they meet certain conditions.
Dewey's ex-Finance Director Francis Canella also pleaded guilty in
the case. His record was unsealed on Thursday. Prosecutors will
recommend a sentence of two to six years in prison, if he
cooperates, according to his agreement.
Lawyers for the top executives, who have pleaded not guilty, said
the witnesses had not provided direct evidence against their
clients.
Still, the admissions contained comments that prosecutors may use in
an effort to implicate Sanders.
"I was instructed by Joel Sanders to create invoices, knowing that
they would not be sent to clients," Lourdes Rodriguez said in her
statement.
The former billing manager said she understood the invoices were "to
hit certain numbers" that were required by the firm's loan
agreements with banks.
A lawyer for Warren could not immediately be reached.
The case is New York v Davis et al, New York State Supreme Court,
New York County.
(Reporting by Karen Freifeld; editing by Andrew Hay and Dan Grebler)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
