Dewey & LeBoeuf leaders accused of fraud

March 6, 2014 Three former leaders of the failed law firm Dewey & LeBoeuf have been accused of engaging in massive fraud to hide the firm's financial struggles from banks and other creditors.

Manhattan prosecutors allege that former Dewey Chairman Steven Davis, former executive director Stephen DiCarmine, and former Chief Financial Officer Joel Sanders misrepresented expenses and falsely claimed revenue to hide financial problems arising from the financial crisis.

The alleged fraud extended from November 2008 to early March 2012, when Dewey fell into bankruptcy court and dissolved. The three former leaders have been charged with a crimes that include grand larceny, securities fraud, conspiracy, and falsifying business records.

"Fraud is not an acceptable accounting practice," said Manhattan District Attorney Cyrus Vance Jr. , in a statement. "Their wrongdoing contributed to the collapse of a prestigious international law firm, which forced thousands of people out of jobs and left creditors holding the bag on hundreds of millions owned to them."

All three of the accused deny the allegations.

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