SEC Discloses Deals With Ex-Dewey Leaders Sanders, DiCarmine
The agency's case against former Dewey executive Stephen DiCarmine now appears to be over. But that's not the case for other Dewey leaders.
April 17, 2018 at 06:05 PM
3 minute read
The U.S. Securities and Exchange Commission has disclosed details of its settlements with two former Dewey & LeBoeuf executives.
Former Dewey executive director Stephen DiCarmine, under his settlement with the SEC, is required to pay a $35,000 civil penalty, according to court documents filed late Monday. Meanwhile, the SEC agreement with former Dewey Chief Financial Officer Joel Sanders is only a partial settlement. It prohibits him from serving as an officer or director of a public company and leaves open the possibility of a future fine against him.
The SEC had previously announced tentative settlements with Sanders and DiCarmine, but on Monday filed details of their proposed settlements, seeking approval from U.S. District Judge Valerie Caproni of the Southern District of New York.
Two years after Dewey collapsed in 2012, Manhattan prosecutors alleged its executives had lied to banks and investors about the law firm's true financial performance. While a trial acquitted DiCarmine of criminal charges, Sanders was found guilty last year on scheme to defraud, securities fraud and conspiracy charges. Sanders avoided jail time after a New York state judge ordered him to pay a $1 million fine and perform 750 hours of community service.
The SEC brought its civil case against the Dewey executives for securities violations at the same time criminal charges were filed in 2014.
The agency's case against DiCarmine now appears to be over. But that's probably not the case for other former Dewey leaders.
Besides Sanders, the SEC has also reached only partial settlements with ex-Dewey chairman Steven Davis, former finance chairman Francis Canellas and ex-controller Thomas Mullikin. The partial settlements against these defendants mean they have settled with the SEC on liability, but they have not settled on damages, and the SEC could pursue sanctions against them, including disgorgement, interest and civil penalties. In a letter filed in court last year, SEC attorney Howard Fischer said the commission “intends to do so.”
According to a February order, it is anticipated that Caproni will set a motion schedule for damages against Davis, Sanders, Canellas and Mullikin this year.
DiCarmine's attorney in the SEC case, Michael King, a solo practitioner in Chicago formerly with Locke Lord, declined to comment. Akerman securities litigation chairman Brian Miller, who represents Sanders in the SEC case, did not return a message seeking comment.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Big Law Partner Presented With State Bar's Scheindlin Award
'A World of Credit': Ex-FTX Executive Gary Wang Sentenced to Time Served Following Cooperation
Manhattan Prosecutors Say They Will Oppose Efforts by Trump Legal Team to Dismiss Case
Trending Stories
- 1Dog Gone It, Target: Provider of Retailer's Mascot Dog Sues Over Contract Cancellation
- 2Lululemon Faces Legal Fire Over Its DEI Program After Bias Complaints Surface
- 3Plaintiff Gets $500K Policy Limit Without Surgery
- 4Philadelphia Bar Association Executive Director Announces Retirement
- 5SEC Chair Gary Gensler to Resign on Trump's Inauguration Day
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
