A senior partner in top management at failed Dewey & LeBoeuf indicated to jurors at the criminal trial of the firm’s former top executives that news of the investigation by the Manhattan District Attorney’s Office was linked to both the end of merger talks and the collapse of the firm a month later.
The prosecution’s witness, former executive committee member Richard Shutran, appeared to bolster the defense in his testimony on Monday at the state court trial against former Dewey & LeBoeuf chair Steven Davis, former executive director Stephen DiCarmine and ex-CFO Joel Sanders. Prosecutors have alleged that the three lied to lenders and investors about the firm’s finances and engaged in numerous instances of accounting fraud.
