A Dewey Plea That May Yield More Than Anyone Expected

, The Am Law Daily

   | 2 Comments

Former Dewey & LeBoeuf finance director Frank Canellas copped a guilty plea that could lead to some surprising places.

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  • Charles Lomax

    Something is rotten here, but it may not be what you allude to. As with most large firms, Dewey partners were paid on a wildly unequal basis. Everyone got the same monthly draw, with the vast majority of the rest at year-end. The deal with Dewey‘s banks was to raise $X million thru the PCP and they would not care one bit about how it got whacked up among former partners. By using a one year reachback, the PCP payments were allocated based on a period when the distributions over draw were minimal and the big one at year end never came. That means the allocation was flatter - a lot flatter - than if a longer reachback had been used. The modest progressivity of the PCP formula did not make up for this inequality. Sure, Canellas was in the middle of this, but my guess is Zolfo found a superficially objective way to favor the insiders who got them their very lucrative gig in the Dewey bankruptcy case.

  • Wesson

    Don‘ forget the full sentence Emerson wrote about consistency was
    “a foolish consistency is the hobgoblin of small minds, adored by little statesmen and philosophers and divines"

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