Prosecutor: Executives lied as NYC law firm failed

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Associated Press

Posted on March 6, 2014 at 10:00 AM

Updated Thursday, Mar 6 at 3:30 PM

NEW YORK (AP) — Three former leaders of a once-potent New York City law firm are facing fraud charges stemming from its collapse.

Manhattan District Attorney Cyrus R. Vance unveiled the criminal case Thursday in what was the nation's biggest law firm bankruptcy.

Former Dewey & LeBouef (luh-BUHF') LLP chairman Steven Davis, former chief executive Stephen DiCarmine and former chief financial officer Joel Sanders pleaded not guilty to charges including fraud. They're free on $2 million bond each.

Defense lawyers say the three committed no crimes and tried to save the firm after the 2008 financial crisis.

Vance says they conspired to cook the firm's books from 2008 until its 2012 implosion. He says they misled auditors and even their own partners.

Vance says seven ex-Dewey employees pleaded guilty.

Dewey once employed 3,000 people worldwide.

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