A criminal case against three former Dewey & LeBoeuf LLP executives should be mostly unsealed, Manhattan District Attorney Cyrus R. Vance Jr. said, a move that may reveal the identities of seven employees who have already pleaded guilty.
The former executives were charged by Vance’s office this month with a “blatant” $200 million fraud that led to the largest law firm bankruptcy in history. The names of seven other employees who pleaded guilty weren’t disclosed. The New York Times sought to unseal parts of the case to reveal their identities.
Vance wants court permission to unseal all but a single document in the case, according to partly redacted papers filed today in New York State Supreme Court in Manhattan. Vance argued, though, that the newspaper’s request to intervene and seek justification for the sealing should be rejected as invalid.
Dewey’s ex-Chairman Steven Davis; Stephen DiCarmine, the former executive director; and Joel Sanders, the ex-chief financial officer, were accused in a 106-count indictment of using accounting gimmicks similar to those that sent top executives at WorldCom Inc. and Tyco International Ltd. to prison a decade ago. Authorities cited e-mails in which the men referred to “fake income,” “cooking the books” and “accounting tricks.”
Ex-client relations manager Zachary Warren was also arrested. Vance said March 6 that seven others, some of whom were cooperating with prosecutors, had pleaded guilty. They weren’t identified.
Dewey, once the No. 3 legal adviser to banks handling merger deals, filed for bankruptcy protection in May 2012, owing creditors $245 million. The New York-based firm, the product of a 2007 merger between Dewey Ballantine and LeBoeuf, Lamb, Greene & MacRae, fell apart within weeks after ousting Davis in April 2012 and watching virtually all its partners quit for competing firms.
The criminal case is People v. Davis, 773-2014, New York State Supreme Court (Manhattan). The SEC case is SEC v. Davis, 14-cv-01528, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Tiffany Kary in New York at email@example.com