The Manhattan District Attorney’s office accuses former Dewey & LeBoeuf chair Steven Davis, executive director Stephen DiCarmine and chief financial officer Joel Sanders of conspiring over four years to jigger the firm’s books to keep it afloat, and of lying about the firm’s true finances to insurance company investors who underwrote a $150 million debt offering and to its bank lenders.
The March 2012 indictment, attached here, listed 106 counts, including a fraud, a conspiracy, and a Martin Act charge against all three defendants; 15 grand larceny charges related to the individual bank lenders and the insurance companies who invested in the debt offering; and 44 counts of falsifying business records alleging specific accounting misdeeds that acted to inflate revenues, reducing expenses or misclassifying partner disbursements.
