{"id":41063,"date":"2014-03-10T08:51:40","date_gmt":"2014-03-10T12:51:40","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=41063"},"modified":"2014-03-10T08:57:37","modified_gmt":"2014-03-10T12:57:37","slug":"sec-charges-five-dewey-leboeuf-executives","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2014\/sec-charges-five-dewey-leboeuf-executives.html","title":{"rendered":"SEC Charges Five Dewey &#038; LeBoeuf Executives"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/03\/Dewey-LeBoeuf1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright  wp-image-41070\" alt=\"Dewey-LeBoeuf\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/03\/Dewey-LeBoeuf1.jpg\" width=\"283\" height=\"163\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/03\/Dewey-LeBoeuf1.jpg 471w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/03\/Dewey-LeBoeuf1-300x173.jpg 300w\" sizes=\"auto, (max-width: 283px) 100vw, 283px\" \/><\/a>New York (HedgeCo.Net) &#8211; The SEC has charged five executives and finance professionals with facilitating a $150 million fraudulent bond offering by the now out of business Dewey &amp; LeBoeuf, the international law firm where they worked.<\/p>\n<p>Chairman Steven Davis, executive director Stephen DiCarmine, chief financial officer Joel Sanders, finance director Frank Canellas, and controller Tom Mullikin have been charged, the SEC said.\u00a0In a parallel action, the Manhattan District Attorney\u2019s Office today announced criminal charges against Davis, DiCarmine, and Sanders.<\/p>\n<p>For example, in the mad scramble at year-end 2008 to meet obligations to bank lenders, Sanders boasted to DiCarmine in an e-mail, \u201cWe came up with a big one: Reclass the disbursements.\u201d\u00a0 DiCarmine responded, \u201cYou always do in the last hours. That\u2019s why we get the extra 10 or 20% bonus. Tell [Sanders\u2019 wife], stick with me! We\u2019ll buy a ski house next.\u201d\u00a0 DiCarmine later e-mailed Sanders, \u201cYou certainly cheered the Chairman up. I could use a dose.\u201d\u00a0 Sanders answered, \u201cI think we made the covenants and I\u2019m shooting for 60%.\u201d \u00a0He cryptically added, \u201cDon\u2019t even ask \u2013 you don\u2019t want to know.\u201d<\/p>\n<p>The SEC alleges that the five turned to accounting fraud when the firm needed money to weather the economic recession and steep costs from a merger. \u00a0Fearful that declining revenue might cause its bank lenders to cut off access to the firm\u2019s credit lines, Dewey &amp; LeBoeuf\u2019s leading financial professionals combed through its financial statements line by line and devised ways to artificially inflate income and distort financial performance.<\/p>\n<p>\u201cAs Dewey &amp; LeBoeuf\u2019s revenue was falling and the firm was struggling to meet commitments, its top executives and finance professionals brazenly looked for ways to create fake income and retain their lucrative salaries and bonuses,\u201d said Andrew M. Calamari, director of the SEC\u2019s New York Regional Office.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; The SEC has charged five executives and finance professionals with facilitating a $150 million fraudulent bond offering by the now out of business Dewey &amp; LeBoeuf, the international law firm where they worked. Chairman Steven Davis, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-41063","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/41063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=41063"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/41063\/revisions"}],"predecessor-version":[{"id":41072,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/41063\/revisions\/41072"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=41063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=41063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=41063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}