Two former partners who testified Wednesday at the Dewey & LeBoeuf criminal trial in New York state court in Manhattan said that they were shocked to learn that almost none of the income they took home in 2009 was reported as such on their firm-prepared tax forms the following year.
Instead, Dewey & LeBoeuf reported to the Internal Revenue Service that it had distributed to the two partners the capital it owed them, when in fact the capital had not been repaid. As the case concludes its second week—the court will adjourn Thursday for an educational development day in New York schools—prosecutors appear to be building their case that the three Dewey & LeBoeuf executives on trial knowingly stiffed departing partners of hundreds of thousands of dollars in capital to boost earnings in 2009 and submitted false information to the IRS.
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