Former Dewey & LeBoeuf Executive Convicted in Split Verdict -
By MATTHEW GOLDSTEIN and LIZ MOYERMAY 8, 2017
Nearly five years after the collapse of Dewey & LeBoeuf, and roughly 20 months after a mistrial in an earlier criminal case, a jury in Manhattan on Monday convicted one former executive of the once mighty New York law firm on charges
that he schemed to hide the firm’s failing finances from financial backers.
In his charge to the jury on May 1, Justice Robert M. Stolz told the jurors
that Mr. DiCarmine and Mr. Sanders were on trial not for the financial collapse of Dewey but on charges that they sought to conceal the severity of its financial situation.
Dewey & LeBoeuf — which was created a decade ago from the merger of two storied law firms, Dewey Ballantine
and LeBoeuf, Lamb, Greene & MacRae — once employed more than 1,300 lawyers.
A few months after the trial, prosecutors whittled down the case by dismissing dozens of charges
and entered into a five-year deferred prosecution agreement with one of the defendants: Steven H. Davis, the firm’s former chairman.
In bringing the case, Mr. Vance also announced his office had secured guilty pleas
— most of them for misdemeanors — from seven low-level employees at the law firm.
Manhattan prosecutors said that Mr. DiCarmine, 60,
and Mr. Sanders, 58, were part of a plot to manipulate the firm’s financial records to defraud bank lenders and insurance companies that invested in a bond offering.
Joel Sanders, the law firm’s former chief financial officer, was found guilty on all three counts.