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Innocent's Imperative

What are innocent victims suffering personal financial problems from the Dewey LeBoeuf implosion to do?

If you have been victimized by the horrendous actions of Dewey LeBoeuf, you need to take action ASAP.

Any three creditors who are owed money can together file an involuntary petition to force the firm into bankruptcy. There are many reasons why you'll want to do this, and only a lawyer can provide you legal advice. BankruptcyMisconduct can offer our opinion, but like Smokey the Bear kind-of said: "Only you can fight organized crime". We believe that you will be much better off the sooner you file an involuntary petition, and organize to put political pressure on all politicians to ensure that the apparent criminal acts are fully investigated and prosecuted.

While it is true that many large corporate bankruptcy cases are abused by Debtors' management and their "professionals", we believe that only the protections and safeguards of a federal proceeding will provide victims some chance to minimize their losses. Creditors will be much better off once a trustee is in charge of the wreckage of this firm. Books and records can be preserved, and the guilty partners can be pursued. A trustee would also fulfill the role of chasing after all parties who should pony up to pay off the debts. Speaking of which, did you see our new page on J.P. Morgan? A trustee would get a smaller cut of the pot than if you hired a lawyer on contingency, which you're very unlikely to be able to do anyway.

If you are victim, you'll want to be able to recover as much of the money that you are owed as possible. Did you know that once an involuntary bankruptcy has been filed, claims that arise during this period are given priority? So if you're owed money under a pension, or other continuing obligation, we think you'll be much better off once a bankruptcy has been filed.

Piercing that Corp Veil, Piercing that Corp Veil, Piercing that Corp Veil...

Just because Dewey LeBoeuf was organized as a limited liability partnership does not mean that you'll necessarily have to stare at empty bank accounts for payment. The concept of limited liability as found in a corporation is nullified by what is called the Crime / Fraud Exception. In other words, criminals do not enjoy the benefits of limited liability. There are thousands of lawyers who were working at the law firm as it went under. These guys were making millions of dollars per year, some of them many millions. Not to mention the extra mural insider trading profits, but we digress.

How would you like to be able to have multi, multi-millionaire lawyer, with homes in Manhattan, the Hamptons, Vermont, Colorado, and Florida chip in their fair share?

Fight for a Criminal Investigation and Prosecution

If you do nothing, then you can be assured that Prosecutorial Discretion will ensure that the crooks will get off. Fact is, the squeaky wheel gets the grease. Just look at Nifong, or the Trayvon Martin case. Popular voices are extremely effective. Perhaps most important is that with million dollar per year lawyers as the target, the prosecutor has no worries about looking mean. The only hurdle that you will face is getting beyond that tortured notion of "professional courtesy" which often protects dirty lawyers. At the end of the day, an organized and prolonged campaign to the district attorney's office, as well as to your elected officials, will ultimately prove to be a successful venture.

A criminal investigation opens up countless pockets. The huge fortunes stashed away by the dirtiest lawyers will be brought into play.

It's good for honest Partners, too

Yeah, BankruptcyMisconduct has been quite the engine of prophetic prognostication as to this Dewey muck. But we were even a little surprised ourselves to see that some of the firms own partners have brought criminal allegations to the Manhattan District Attorney Cyrus Vance. We have no comment just yet as to whether Mr. Vance suffers any sort of conflict of interest which should force him to allow someone else to carry the baton. But to see the partners acting so clearly, publicly, and early is impressive.

You need to make sure that the criminal investigation is as thorough as possible, not conducted with blinders on or for the intention of quid pro quo. You need to make sure that the General American Mutual acts are fully investigated, with a particular emphasis on the apparent hush money agreement which Dewey management sought to have placed under seal in connection with the Gen Am "Resolution". Talk about Scienter! (Watch our site for a future page on failure to adhere to Missouri Bar rules by lawyers who failed to report the firms misconduct.)

We apologize for appearing cynical, but we have this spider sense that Shutran's "Accounting Something" has something very much to do with this so-called "resolution". The scorching allegations in the $3 Billion dollar lawsuit against Dewey LeBoeuf, which appears to be a treble damage action under the RICO statute, clearly set the stage for a finding of the firm as organized crime entity.

While it is sadly true that the country's largest law firms routinely operate mega case bankruptcies under a quid pro quo business model, in which debtor's official counsel earning tens to hundreds of millions of dollars from the estate, repays the management who caused the troubles with a certain amount of protection from adverse criminal and civil consequence. However, Dewey & LeBoeuf stands to be a much different bankruptcy case. The firm is imploding, the bad guys are running for the exits like lawyers at a movie theater where someone yelled "fire". By filing an involuntary bankruptcy and seeking to stay involved in the case, you can help choose the trustee who is hired by the estate to pursue the criminals.

Hey, you want a good laugh? Do you notice how some former partners are really angry at Steven Davis, and others can't say enough about what a great guy he was? Let's be real here for a moment. There were dozens of lawyers on the executive committee, and we believe that they fully share in whatever criminal culpability that Davis will face. And for the benefit of creditors, in civil consequence as well. Remember how up to 100 of the 300 partners had secret guarantee pay deals? Is there any surprise that some of these guys want to insulate Davis from any further downside, lest he strikes a deal with a prosecutor. Keep up to date with our Dewey Le Perp criminal attorney retention chart. Of course, it's no surprise that the innocent victim partners are angry. They deserve to be. They were defrauded just like the countless creditors.


Criminal Proceeding and Investigations are not affect by Bankruptcy

Best of all, the criminal proceedings happen separate from the bankruptcy case. A bankruptcy judge has no authority to limit any criminal investigation or consequence. And notwithstanding the shameful conduct by some Delaware based U.S. Trustees in the eToys case, neither can a U.S. Trustee.

Make no mistake, the Dewey LeBoeuf implosion is very high profile. And if you ensure that public officials do their jobs, you may end up getting yourself fully repaid, and see some dirty crooks thrown in prison.

Godspeed Creditors!