| NEW YORK, March 6
NEW YORK, March 6 Former top executives from
bankrupt U.S. law firm Dewey & LeBoeuf were expected to be
criminally charged on Thursday for "cooking the books" at the
once prestigious firm and defrauding investors and lenders, said
a person familiar with the matter.
Charges were expected to be announced against former Dewey
chairman Steven Davis, 60, former executive director Stephen
DiCarmine, 57, and former chief financial officer Joel Sanders,
55, said the person, who spoke on condition of anonymity.
The U.S. Securities and Exchange Commission on Thursday
filed a related civil lawsuit against Davis, DiCarmine, Sanders
and two former Dewey finance officials, finance director Frank
Canellas and former controller Thomas Mullikin.
The SEC complaint accused the former executives of
defrauding investors by misleading them about Dewey's finances
in marketing materials for a $150 million bond offering in 2010.
According to the regulator, the Dewey officials
"orchestrated and executed a bold and long-running accounting
fraud intended to conceal the firm's precarious financial
Manhattan District Attorney Cyrus Vance Jr has scheduled a
press conference for 11 a.m. Thursday. SEC enforcement chief
Andrew Ceresney and FBI officials are expected to attend.
Vance has been investigating Dewey's collapse since April
2012, when some Dewey & LeBoeuf partners asked him to examine
"financial irregularities" at the firm.
Lawyers for Davis, DiCarmine, and Sanders did not
immediately return calls for comment.
A spokeswoman for the Manhattan District Attorney declined
comment. A lawyer for Canellas declined comment.
Dewey & LeBoeuf was formed in 2007 through a merger of Dewey
Ballantine and LeBoeuf, Lamb, Greene & MacRae. It became a
megafirm with more than 1,400 lawyers around the world.
In May 2012 it sought bankruptcy protection, becoming the
largest U.S. law firm to do so. The firm collapsed after lawyers
left over disputes over unpaid compensation and questions about
the firm's financial health.
At the time, Dewey's lenders were led by JPMorgan Chase & Co
and also included Citigroup Inc's private banking
unit, Bank of America Corp and HSBC Holdings Plc