Carlos Spinelli-Noseda

Former Sullivan & Cromwell Partner Resigns for Defrauding Clients and the Firm (to the tune of $500K)

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Carlos Spinelli Noseda Carlos J Spinelli Noseda Sullivan Cromwell Above the Law blog.jpgBack in July, we were the first to wonder about the mysterious departure from Sullivan & Cromwell of Carlos Spinelli-Noseda, a rising star at the über-prestigious (and profitable) law firm. Some commenters viewed our interest in his departure as unseemly, prying, or reflecting bias against S&C.

We don’t mean to gloat — okay, maybe just a little — but we’ve been vindicated by recent revelations. From a report by Anthony Lin in the New York Law Journal:

A former Sullivan & Cromwell partner has resigned from the bar for billing his clients and firm more than $500,000 in fraudulent travel and entertainment expenses.

Carlos J. Spinelli-Noseda, a banking and finance specialist who joined Sullivan & Cromwell straight out of Harvard Law School in 1994 and became a partner in 2003, was facing a disciplinary investigation over a pattern of improper billing dating from roughly July 1998 to February 2008.

In a June 3 affidavit of resignation he submitted to the disciplinary committee of the First Department, Mr. Spinelli-Noseda admitted he could not successfully defend himself against charges of professional misconduct. Such resignations are frequently tendered when further proceedings are almost certain to lead to disbarment.

Read more, after the jump.

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What’s Up at Sullivan & Cromwell?

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Sullivan Cromwell new logo Above the Law blog.jpgThe Brokeback Lawfirm scandal folded its pup tent months ago. But there’s still stuff to cover at one of ATL’s favorite firms, the venerable Sullivan & Cromwell.

Here are two items. First, from a tipster:

If I recall correctly, Sullivan & Cromwell sent out a memo in December or January saying that even though they paid the “special bonuses” in December, they still intended to pay additional profit-sharing bonuses in February. [February is over] and as far as I know, not a word from S&C. Can you guys please make a big deal over this?

The tipster’s memory is slightly off. From chairman H. Rodgin Cohen’s earlier bonus memo:

[T]he Firm will pay senior associates compensation in addition to salary and bonus through our new Senior Associate Supplemental Bonus Plan (“the Plan”). We have decided to accelerate payments under this new Plan to result in the following [market-matching bonuses] being paid on December 14 to our senior associates, with final supplemental payments to be made in the Spring of ’08.

We are now officially into spring 2008. So ATL hereby “make[s] a big deal over this.” Has S&C paid the supplemental bonuses to its senior associates? If so, can someone please give us the skinny?

Second, here’s an interesting rumor of a partner departure from S&C, from a different tipster….

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