Grand larceny, fraud and other felony charges were levied against Steven Davis, former chairman; Stephen DiCarmine, former executive director; and Joel Sanders, former chief financial officer. Criminal charges were also laid against Zachary Warren, a former client relations manager. 

Civil fraud charges

The Securities and Exchange Commission filed civil fraud charges against Messrs Davis, DiCarmine and Sanders and also against two other ex-Dewey officials - Frank Canellas, former finance director; and Thomas Mullikin, former controller. The Commission said that investors had been misled over a 2010 bond offering. 

Good faith

Elkan Abramowitz, representing Steven Davis, said that evidence would show that he had not committed any crimes, and that his action’s in the role of chairman ‘were taken in good faith in an effort to make the firm a success’.

False entries

Manhattan District Attorney Cyrus Vance and other prosecutors said that Messrs Davis, DiCarmine and Sanders had defrauded lenders, from 2008 and afterwards, by misrepresenting the state of the firm’s cash flow and other lending terms. The prosecutors say that false entries were made in the law firm’s accountancy records. Mr Vance accused the three of stealing nearly US$200m from 15 financial institutions. Source: Reuters