Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “How do I find a bankruptcy attorney in Charlotte?”
The Great Recession combined with the voracious greed of law-firm partners led to the collapse of Dewey & LeBoeuf, a law firm that employed over 1,300 attorneys in 26 offices around the world at the time of its 2012 bankruptcy filing. So say defense attorneys for former Dewey chairman Steven Davis, former chief financial officer Joel Sanders, and former executive director Stephen DiCarmine.
They were charged in March with larceny and securities fraud. Prosecutors said the men cooked the firm’s accounting books during a four-year conspiracy to keep the law firm afloat. One of the men actually used the phrase “cooking the books” in an email describing their efforts to mislead lenders and creditors.
The $550 million in creditor claims against the firm gave it the dubious distinction as the largest law-firm bankruptcy ever. Bankruptcy filings appear to show that the firm struggled to generate enough revenue to pay its star lawyers and keep up with other expensive overhead costs.
The book-cooking allegedly began in November 2008 at the height of the Great Recession. Top executives were accused of making fraudulent accounting entries that increased revenue, decreased expenses, or lowered payments to partners. By the end of 2009, however, the firm still owed its lenders $206 million and owed its own partners $240 million, but only had $119 million in cash on hand.