Recently, more details on an alleged scheme to conceal the actual financial condition of Dewey & LeBoeuff LLP were uncovered when a judge revealed the identities and statements of former employees who pleaded guilty to engaging in the fraud. The former employees include accountants, billing staff, and back-office workers. The statements maintain that the employees helped overstate revenue and used accounting tricks to conceal losses and cash shortages until the firm was forced to file for bankruptcy in 2012. In the aggregate, the statements appear to show a small group of people who carried out the wishes of Francis J. Canellas and Joel Sanders while knowing what they were doing was wrong .
One former billing manager and one former file clerk both acknowledged that Sanders pressured them into creating invoices they knew would not be sent to clients and that they knew this behavior was inappropriate. Other employees stated that they lied directly to outsiders about the firm’s financial situation. The indictment filed by the Manhattan District Attorney’s office names four employees, including Sanders, former Executive Director Stephen DiCarmine, and former Chairman Steven Davis. Sanders and Canellas are mentioned throughout the newly released statements while DiCarmine and Davis are sparsely mentioned .
If you or someone you know has lost money as a result of an investment, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies .