Former Dewey employee testifies he reclassified money paid to firm chairman
A former employee of Dewey & Leboeuf testified on Monday that he was ordered in 2011 to reclassify $1.4 million in disbursements to firm chairman Steven Davis, one of three former Dewey leaders on trial for an alleged scheme to mislead lenders and bond buyers about the firm’s finances.
The former partner relationship specialist, David Rodriguez, said he usually reclassified disbursements when ordered to do so without question, the Am Law Daily reports. But Rodriguez said he initially balked when the firm’s former finance director, Francis Canellas, asked him to reclassify $1.4 million in income to Davis as capital.
Rodriguez said he asked Canellas why he wanted the reclassification, and Canellas said there was talk of changing Davis from an equity partner to a salary partner. Rodriguez said the explanation didn’t make sense because Davis would have to give up his chairmanship if he was no longer an equity partner.
Rodriguez finally complied because he did not want to lose his job, he testified. Reclassifying the money reduced the payments to Davis on the firm’s books.
Rodriguez has pleaded guilty to falsification of business records in the second degree and is cooperating with prosecutors. Also on trial with Davis are former chief financial officer Joel Sanders and former executive director Stephen DiCarmine.
Related articles:
ABAJournal.com: “Former Dewey controller testifies he falsified accounting records”
ABAJournal.com: “Former Dewey partner testifies she lost $621K in equity capital while two leaders earned millions”
ABA Journal: “How Dewey management’s rosy picture masked an ugly truth”
