(Photo by Maggie Soladay)
As criminal proceedings against three former Dewey & LeBoeuf leaders continue to make news, the trustee overseeing the estate of the firm they allegedly helped bankrupt is keeping up his efforts to recover money for creditors from former Dewey partners.
On Wednesday, the Dewey liquidation trust targeted two more former firm partners with so-called clawback suits aimed at recovering money those lawyers received in the three-and-a-half years between when the firm reportedly became insolvent and its bankruptcy filing in May 2012.
Led by trustee Alan Jacobs, the trust filed separate suits in federal bankruptcy court in Manhattan against Patrick Gennardo [PDF], a onetime Dewey insurance partner, and John Quiñones [PDF], a former corporate partner at the firm.
According to the filings, the Dewey trust seeks $234,977 from Gennardo, who it says collected that amount in installments between March 2009 and February 2011, though he left the firm in January 2009 to join Hogan Lovells predecessor firm Lovells. (Gennardo subsequently moved to Edwards Wildman Palmer predecessor Edwards Angell Palmer & Dodge in 2010 before landing in the New York office of Dentons last month.)
The trust seeks $708,063 from Quiñones, who was with Dewey from 2007 until 2010, when he left to become general counsel for the YMCA Retirement Fund. Neither he nor Gennardo immediately responded to The Am Law Daily’s requests for comment.
The suits against Gennardo and Quiñones bring to 24 the number of former Dewey partners hit with clawback claims. As The Am Law Daily has previously reported, the trust said in January that it planned to pursue claims against 45 former Dewey partners in total.
All of those in Jacobs’ clawback crosshairs chose not to add their names to the $71 million settlement reached in 2012 between the Dewey bankruptcy estate and some 400 former firm partners. As The Am Law Daily has previously reported, that deal sought the return of a portion of the money the participating partners received from the firm in 2011 and 2012. The suits now being filed by the trust, on the other hand, extend the clawback period back to the beginning of 2009, when the firm is estimated to have actually become insolvent.
Meanwhile, the criminal case connected to Dewey’s descent into bankruptcy rolled on this week. Sibling publication New York Law Journal reported Thursday that the firm’s former finance director, Francis Canellas, had pleaded guilty to second-degree grand larceny last month. On Friday, a Manhattan Supreme Court judge ordered the unsealing of guilty pleas entered by six other former Dewey employees who were criminally charged in connection with Manhattan District Attorney Cyrus Vance’s investigation into what he alleges was a massive accounting fraud at the firm. Former Dewey chairman Steven Davis, the firm’s former executive director, Stephen DiCarmine, former chief financial officer Joel Sanders and onetime client relations manager Zachary Warren were indicted on a slew of felony charges earlier this month for allegedly engineering that fraud scheme.