Jacko Law Group, PC
Call Today for a Consultation
San Diego 619-298-2880 San Francisco 415-766-3599 Los Angeles 213-631-2549

Law Firm Charged with Fraudulent Bond Offering to Generate Funds During Financial Crisis

The ripple effects of the 2008/2009 financial crisis still echoes throughout most US industries today. Fraudulent acts of certain “bad actors” – both individuals and firms in the financial industries during this time – are also still being discovered today. Take for example the now-defunct international law firm Dewey & LeBoeuf, who according to a March 6, 2014 press release issued by the Securities and Exchange Commission (“SEC”), has been charged with creating a $150 million fraudulent private bond offering. According to the release, this offering misled investors on the financial health of the law firm, which was struggling as a result of the recession, “steep costs from a merger”, and surmounting fear of severed credit lines from bank lenders.Accounting fraud lies at the center of the scheme, with five (5) high-level executives and financial personnel – from the chairman and executive director, to the CFO, financial director and controller – participating in manipulative accounting-related actions which “artificially inflated income” by $36 million (15 percent) in 2008 and $23 million in 2009, and “distorted financial performance” to create “blatantly falsified financial results”. These results were then reported to investors in order to sell bonds, giving the illusion that Dewey & LeBoeuf was “a prestigious law firm that had weathered the financial crisis and was poised for growth.” The culture of accounting fraud at the firm was so rampant, the SEC alleges, that email correspondence evidence showed admissions of bonuses and misdealings throughout upper management – and even a $7.5 million line item deduction labeled “Accounting Tricks.” Though many suffered major financial losses during the Great Recession, the executives and finance professionals associated with the now non-existent Dewey & LeBoeuf will likely experience a wealth of regulatory woes in the post-financial-crisis age of 2014.For further information on this and other related subjects, please contact us at info@jackolg.com or (619) 298-2880.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Email us to request more information or to schedule an appointment.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

San Diego Office
1350 Columbia Street
Suite 300
San Diego, CA 92101

Toll Free: 866-497-2298
Phone: 213-631-2549
Phone: 619-298-2880
Fax: 619-298-2882
Map & Directions

San Francisco Office
Four Embarcadero Center
Suite 1400
San Francisco, CA 94111

Phone: 213-631-2549
Phone: 415-766-3599
Fax: 619-298-2882
Map & Directions

Los Angeles Office
535 N. Brand Boulevard
Suite 279
Glendale, CA 91203

Phone: 213-631-2549
Fax: 619-298-2882
Map & Directions