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Ex-Dewey employee testifies on payment reclassification to chairman
The employee says that he agreed to reclassify a $1.4m payment to the then chair Steven Davis because he feared he would lose his job if he did not.
New York: Dewey trial sees argument over payment to the Chair f11photo
Steven Davis is one of three fromer Dewey senior executives on trial in this case on allegations that they misled the creditors to the law firm which went bankrupt in 2012. David Rodriguez, giving this evidence in the court, has pleaded guilty to falsifying business records in the second degree - and he is co-operating with the prosecutors.
Explanation did not make sense
Mr Rodriguez said that the explanation he was given for reclassifying the $1.4m from income to capital in Mr Davis's hands did not make sense. But he agreed to do it as he did not want to lose his post. One effect of reclassifying the sum was that it reduced the payments made to Mr Davis as recorded in the books of Dewey.
Leading US firm
The New York-headquartered firm was one of the leading US law practices with over 1,000 lawyers on its payroll before it went bankrupt. Source: ABA
