Citibank denies wrongdoing in Dewey loan case
Citibank N.A. has denied allegations that it conspired with the former leaders of the now-defunct Dewey & LeBoeuf to attract lateral partners with a Ponzi-like scheme aimed at paying off Dewey's debts to the bank through a steady flow of capital contribution payments.
The allegations are made in response to Citi’s claim that it is owed money on a loan extended to former Dewey partner Steven Otillar, who borrowed $207,000 from the bank in 2011.
Citi argues that partners should have done their own research into the firm's financial condition, and that it was not the bank's responsibility to warn them, while Otillar claims that Citi should have cautioned him of Dewey's financial troubles when he took out the loan.
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