Settlement Details with Two Former Dewey Execs Released by SEC

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Summary: The U.S. Securities and Exchange Commission released some details of the settlement with two former Dewey & LeBoeuf executives.

Two former Dewey & LeBoeuf executives made settlements with the U.S. Securities and Exchange Commission, with the details now being released. Law.com reported on the details on the settlement that were released by the SEC with Stephen DiCarmine and Joel Sanders.

  

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The settlement agreement with the former executive director DiCarmine requires him to pay a $35,000 civil penalty. Sanders, the former Chief Financial Officer, agreed to a partial settlement. He is prohibited from serving as an officer or director of a public company plus there is a possibility he could be fined at a future time.

The SEC previously announced that there were tentative settlements with the two former executives, moving on Monday to realize the details of the proposed settlements. They are just waiting for approval from U.S. District Judge Valerie Caproni of the Southern District of New York.

In a trial against the Dewey executives after the firm collapsed in 2012, DiCarmine was acquitted of criminal charges but Sanders was found guilty of scheming to defraud, securities fraud and conspiracy charges. He was able to avoid jail time but must pay a $1 million fine and complete 750 hours of community service.

The executives were accused of lying to banks and investors about the state of the law firm. The SEC brought the civil charges against them for securities violations at the same time as the criminal charges filed by prosecutors in 2014. Settlements with the other former executives, like the ex-chairman Steven Davis, former finance chairman Francis Canellas, and ex-controller Thomas Mullikin, are still in the works. These former executives have made partial settlements, meaning they settled on liability but not damages. The SEC can still pursue sanctions against them as disgorgement, civil, and interest penalties. SEC attorney Howard Fischer said in a letter that they “intend to do so.”

An order from February is waiting for a motion schedule set by Caproni for the damages against Mullikin, Canellas, Sanders, and Davis.

DiCarmine was represented by Michael King, a solo practitioner formerly with Locke Lord. Sanders was represented by Brian Miller, Akerman’s securities litigation chairman.

Do you think the settlements are fair? Share your thoughts with us in the comments below.

To learn more about the legal cases against the Dewey executives, read these articles:

• Dewey & LeBoeuf Exec Joel Sanders Convicted of Securities Fraud
• Dewey and LeBoeuf Execs Cleared of Some Counts
• Former Dewey & LeBoeuf Partner Jumps to His Death off of New York High-Rise

Photo: law.com