For a while, interest in the Dewey drama seemed to be flagging (at least according to our traffic statistics). But lately it has revived, thanks to the recent criminal charges against the firm’s former leaders, plus the arrival on the scene of Zachary Warren — a total Dewey & LaBoeuf-Cake.
Interest in Zach Warren has been keen — and not just because of his good looks. His tale seems to resonate with Above the Law readers because, as Matt Kaiser recently noted, “he seems like one of us.” Although Above the Law’s readership is expanding, with more than a million unique visitors a month, it’s still fair to say that a young lawyer, recently graduated from a top law school, is within ATL’s demographic sweet spot.
Over the past few days, we’ve learned more about Zachary Warren. Dewey want to share this knowledge with you? Of course we do….
The indictment of Zachary Warren is troubling for a lot of lawyers because, well, he seems like one of us. His post-Dewey path to a great law school, two cool clerkships, and an offer from a great law firm, is something we, as lawyers, can identify with.
What’s most frustrating about Zachary Warren’s situation is that it looks like he was charged largely because he decided to talk to law enforcement without hiring a lawyer first.
Most of us would like to think that, as lawyers, we’re smart enough to make the right legal moves if we’re in a place where we need to. Yet Warren talked to law enforcement, when most of us know that’s the wrong move (and, if you don’t know that’s the wrong move, there’s a short video on my firm’s webpage explaining how we look at it). What’s up with that?
As Lat mentioned earlier this week, there’s a dispute about what happened. Some of Warren’s friends say he was essentially duped about his status or the nature of the interview he participated in. The Manhattan D.A. has pushed back, through spokeswoman Erin Duggan Kramer: “The facts [in this New York Times piece] are incorrect. The claim that an attorney with a federal clerkship could have any misunderstanding of what it means to speak with and agree to meet with the D.A.’s office is preposterous.”
Kramer’s point makes seems intuitively compelling. Why would a smart lawyer talk?
Over the years, we’ve covered many Biglaw employees who have been accused or convicted of insider trading. This should come as no surprise, given the confidential and market-moving information that regularly flows through the hallways and computers of leading law firms.
The latest accusations of insider trading involve a lawyer who worked at a white-shoe law firm. This individual stands accused of taking confidential information he was privy to by virtue of his work and passing it along through a middleman to a broker, who then allegedly traded on it. According to the Securities and Exchange Commission, the scheme generated over $5.6 million in illegal profits, with over $168,000 going to the Biglaw tipster.
At which elite law firm did this defendant work, and from which school did he receive his law degree?
Last week brought some good news for Georgetown University Law Center. In the latest U.S. News law school rankings, GULC moved up one spot to tie at #13 with Cornell. Go Hoyas!
Alas, over the past year the news has been less happy for some individual GULC students and graduates. About a year ago, former student Marc Gersen got sentenced to four years for meth dealing. Earlier this year, alumnus Stephen Glass got rejected for California bar admission, due to his notorious past as a dishonest journalist.
In recent weeks, a very accomplished (and handsome) GULC graduate, currently clerking for a federal appeals court judge, got indicted in connection with the collapse of Dewey & LeBoeuf. What Dewey know about Zachary Warren?
For starters, there are the emails laid out by the SEC in its complaint, such as:
“I don’t see how we’ll get past the auditors another year.”
“I assume you [k]new this but just in case. Can you find another clueless auditor for next year?”
“I don’t know anything about [the contracts] and I don’t want to cook the books anymore. We need to stop doing that.”
“I don’t know. He’s starting to wig a little. Maybe he’s hearing and seeing too much . . . .”
Sadly for people and happily for prosecutors, regrettable emails are simply a fact of modern electronic life. Still, “I don’t want to cook the books anymore” has to be pretty high on the list of things that one is likely to regret putting in an email.
I pity lawyers licensed in Virginia, or at other states that require CLE credit. When they go to a conference, they have to actually go to the conference.
For the rest of us, a conference – especially the ABA’s white-collar criminal defense conference – drops much of the pretense of being an educational experience. It’s an odd thing. One would think that the point of going to a conference would be to learn about the law. Yet, sometimes that’s not the move.
I spent some wonderful years in my 20s living in New Orleans. During Mardi Gras, social obligation would require that I attend certain parties before and then after a parade, but they often started really early in the morning and ended very late at night. The entire week before Fat Tuesday became something of a Bataan Death March of merriment, which, when you’re in the middle of it, is not quite so merry after all.
Criminal charges are on the way for Steven Davis, Stephen DiCarmine, and Joel Sanders — the former chairman, executive director, and CFO, respectively, of defunct Dewey & LeBoeuf.
Almost two years have passed since the Biglaw firm’s bankruptcy filing, causing some observers to think that perhaps the Steves would never get charged. The argument, in a nutshell: they might have been poor managers or even downright moronic, but they didn’t commit any crimes.
Alas, sadly for Messrs. Davis, DiCarmine, and Sanders, it seems that Manhattan District Attorney Cyrus Vance doesn’t agree with that line of thinking. What types of charges can the trio look forward to?
(Please note the UPDATES added to this post, reflecting information from the indictment and the SEC complaint.)
The biggest business issue confronting the white-collar criminal practitioner is getting paid. It’s trickier in the white-collar world than in other practice areas for a few reasons.
First, normally you’re representing an individual. People normally have less money than companies.
Second, many people who commit crimes to get money do it because they don’t have money to begin with. That includes money to pay you.
Third, if a potential client made money through whatever conduct landed them in a criminal case, the Supreme Court just held that now it’s easier for the government to take that money away from them so they can’t pay you.
As the Chief Justice summarized what the Court did, in dissent,
We have held… that the Government may effectively remove a defendant’s primary weapon of defense — the attorney he selects and trusts — by freezing assets he needs to pay his lawyer. That ruling is not at issue. But today the Court goes further, holding that a defendant may be hobbled in this way without an opportunity to challenge the Government’s decision to freeze those needed assets.
I’ve represented a decent number of people who have been accused of fraud.
Some folks who are accused of fraud are really truly unambiguously guilty. They were presented with an open cookie jar, they thought no one was looking, and they took a cookie (metaphorically). They were presented with a morality test and they just didn’t pass.
Like Glenn Frey teaches us in Smuggler’s Blues, “It’s the lure of easy money; it’s got a very strong appeal.”
Other cases have a lot more nuance.
Most federal prosecutors, I find, tend to see cases as not terribly nuanced. They tend to think that each case is a morality test. Once you get the facts figured out, for the typical AUSA, the moral judgments follow pretty quickly.
My sense, though, is that the world is almost always less clear and clean, even when you have all the facts.
With that background, I read with interest James Surowiecki’s piece — “Do the Hustle” — in the New Yorker a few weeks ago about America and its con men. (And, yeah, I know, it was a few weeks ago. You finish the New Yorker right when it comes out? I didn’t think so.).
Most of the Eastern Seaboard is buried under a snowstorm today. Yet, a deeper, harder freeze is finally lifting.
For too long now, the federal government has been living with sequestration. Agencies have seen their budgets frozen or cut. At the same time that the private sector market for lawyers has contracted, getting a job as a lawyer in the federal government has been incredibly hard. It’s been winter in the federal employment world.
Professor Joel P. Trachtman has developed a unique, practical guide to help lawyers analyze, argue, and write effectively.
The Tools of Argument: How the Best Lawyers Think, Argue, and Win is a highly readable 200-page book, available for about $10 in paperback or e-book. Chapters focus on foundational principles in legal argument: procedure, interpretation of contracts and statutes, use of evidence, and more. The material covered is taught only implicitly in law school. Yet, when up-and-coming attorneys master these straightforward tools, they will think and argue like the best lawyers.
For most attorneys, time spent managing the books is a necessary evil at best. Yet it is undeniably a crucial aspect of running a successful practice. With that in mind, we invite you to view or download a free webinar by Above the Law and our friends at Clio to learn how to better manage your finances.
Take this opportunity to learn what it takes to streamline your accounting and get the most out of your time. The webinar agenda:
● The basics of accounting for lawyers.
● How legal accounting differs from regular accounting.
● Report and reconciliation issues surrounding trust accounts.
● How to pick and integrate the best accounting tools for your practice.
● Steps to prepare your tax return for your firm’s income.
Do not miss this crucial chance to optimize your accounting practices. Save time and get back to billing!
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: firstname.lastname@example.org.
Please note that Evan Jowers and Robert Kinney are still in Hong Kong and will stay FOR THE REMAINDER OF THIS WEEK. We still have a handful of available slots for meetings with our Asia Chronicles fans. If we have not been in touch lately, reach out and let us know when we could meet! There is no need for an agenda at all. Most of our in-person meetings on these trips are with folks who understand that improving a legal practice through lateral hiring is an information-driven process that takes time to handle correctly.
Regarding trends in lateral US associate hiring in Hong Kong, we of course keep much of what we know off of this blog. Based on placement revenue, though, Kinney is having one of our most successful years ever in Asia. We are helping a number of our law firm clients with M&A, fund formation, cap markets, project finance, FCPA and disputes openings. These are very specific needs in many cases, so a conversation with us before jumping in may be helpful. As always, we like to be sure to get the maximum number of interviews per submission, using a well-informed, highly targeted, and selective approach, taking into account short, medium and long-term career aims.
Making a well informed decision during a job search is easier said than done – the information we provide comes from 10 years of being the market leader in US attorney placements at the top tier firms in Asia. There is no substitute for having known a hiring partner since he/she was an associate or for having helped a partner grow his or her practice from zip to zooming, and this is happily where we stand today – with years of background information on just about every relevant person in all the markets we serve, and most especially in Hong Kong/China/Greater Asia. So get in touch and get a download from us this week if we can fit it in, or soon in any case!