The bankruptcy trustee unwinding defunct law firm Dewey & LeBoeuf LLP has brought new allegations against two former Dewey executives in a lawsuit seeking the return of more than $21.8 million the two allegedly were paid as the law firm “fell deeper and deeper into insolvency,” the Wall Street Journal reported today. The amended complaint, filed in bankruptcy court on Monday against Dewey’s former executive director, Stephen DiCarmine, and ex-chief financial officer, Joel Sanders, comes six months after Dewey trustee Alan Jacobs first sued the pair. The updated suit incorporates criminal and civil allegations brought against DiCarmine and Sanders in March by the Manhattan district attorney’s office and the Securities and Exchange Commission. Those actions, which also charge Dewey’s former chairman, Steven Davis, and a former lower-level employee, claim that Dewey employees used fraudulent accounting methods to cover up the state of Dewey’s finances for several years leading up to the firm’s 2012 collapse. All four have denied wrongdoing.
