Wednesday, September 5, 2012

The Daily Dirt: Ex-Dewey partner: Citibank embroiled in firm’s ponzi schemes



Reuters reports that a former Dewey & LeBoeuf partner who has been accused by Citibank of defaulting on a loan is making a provocative countercharge: He claims the bank participated in a "fraudulent scheme" to help a few leaders of the now defunct law firm hide Dewey's dire financial situation from him and the broader partnership.


In a 23-page motion filed in New York federal court this month, former Dewey partner Steven Otillar argues that he and other partners were "fraudulently induced" into signing up for a Citibank loan program that financed their capital contributions to the firm. The motion was filed in response to a request made by Citibank in May for summary judgment. In its lawsuit, Citibank argues that Otillar has no legal grounds to claim he doesn't owe payment on the loan....

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