Prosecutors in the criminal trial of three former Dewey & LeBoeuf executives for the first time yesterday presented evidence that suggested the defendants lied to their bankers about how the now-defunct firm spent the money it received from lenders, the American Lawyer reported today. Instead of spending a $125 million long-term loan on capital improvements, Dewey & LeBoeuf paid its partners with the cash, suggested firm emails presented by prosecutors with the New York County District Attorney’s Office. Some emails also showed various defendants asking banks for more money in their credit line on the grounds that Dewey & LeBoeuf needed the additional capital to cover lateral expenses, while internally the very same executives were discussing the growing need for cash to pay current partners what they were owed.
