Dewey & LeBoeuf Partners Indicted

 Posted on March 15, 2014 in Federal Criminal Defense

Former top officials of the prominent global law firm, Dewey & LeBoeuf, were indicted last week for deceiving banks and hiding the firm’s true financial condition from creditors, investors, auditors, and even its own partners. The lengthy indictment paints an elaborate accounting fraud where executives and financial professionals desperately tried to avert financial disaster. In short, the criminal charges brought by the Manhattan District Attorney allege a massive scheme to “cook the books” where the defendants falsified financial records submitted to banks and investors to demonstrate that the firm had complied with existing loans and therefore was worthy of further investor loans. The charges also allege the defendants made fraudulent accounting entries to support these phony representations.

The Securities and Exchange Commission also has brought civil charges against the firm’s top representatives. According to the SEC’s complaint, the fraudulent scheme dates back to late 2008 when senior financial officers began using a multitude of improper accounting tricks to artificially inflate income and mask the firm’s dire financial performance.
Of the eleven criminally charged in this scheme, four have pled not guilty; the seven others reportedly have pled guilty to an indictment that remains under seal.
Unfortunately, all too often businesspeople fall into tight financial situations where they desperately need to borrow cash to keep their businesses afloat. This case serves as an important reminder of the dangers associated with falsifying income, receivables, expenses and the like to avoid a collapse like that of Dewey & LeBoeuf.
As aggressive, Baltimore, Maryland criminal defense attorneys, we have represented individuals and companies indicted in both State and Federal court on similar charges. If you would like to talk to one of our experienced attorneys, please call (410) 385-2225.