14 Jul 2015

Dewey masterplan started in steakhouse, says witness

A co-operating witness has testified that plans to handle a $50m hole in the accounts of failed firm Dewey & LeBeouf began at a lunch in a Manhattan steakhouse and continued with the staff returning to the office and writing up notes of the scheme.

New York: Dewey partners discussed finances in a Manhattan steakhouse Javen

The witness, former finance director Francis Canellas, pleaded guilty to grand larceny in 2014 and could have expected a sentence of up to 15 years for his role in the collapse of Dewey in 2012. But, because he is co-operating, he is likely to receive between two and six years.

Notes on the walls

He told the jury that he, former chief financial officer Joel Sanders (who is one of the three accused) and another employee, Zachery Warren, went to the steakhouse in December 2008 and began creating a 'master plan'. In there and in the office of Mr Warren (who will be tried in a later trial), the three worked out a plan to create $53m in income in the accounts. Notes of the plan were stuck onto the walls of Mr Warren's office. 

Trial

On trial in the financial fraud case alongside Mr Sanders are former chairman Steven Davis and former executive director Stephen DiCarmine. Source: ABA

Top