Former Dewey & LeBoeuf LLP employee and one of the defendants in the financial fraud case, Zachary Warren, stroke a deal with prosecutors to undergo community service in exchange of having his case dropped in a year.
A prosecutor from the Manhanttan District Attorney's office has revealed that Warren agreed on the deferred prosecution agreement, where, in order for his case to be dropped, Warren must complete 350 hours of community service.
As reported by Nasdaq, Judge Robert Stolz also agreed with the agreement saying that he will see Warren in a year. Warren's legal team said that they are deeply pleased with the agreement as well. He had been scheduled for a trial in March.
Warren, along with three other executives in the firm, chairman Steven Davis, executive director Stephen DiCarmine and chief financial officer Joel Sanders faced court charges after they used illegal accounting adjustments to cover the company's financial issues. According to Reuters, Davis also had an agreement with the prosecutors in order to avoid a second trial, where he was declared banned from practicing law in New York, which will be effective for five years.
Warren was considered an important character in Dewey & LeBoeuf's financial scandal after he went to dinner with Mr. Sanders and Frank Canellas who discussed ideas on how they can spring out of their shortfall in net income. According to New York Times, the dinner started what will be a multiyear scheme to cover the firm's deteriorating financial stability.
The three executives were charged with greater charges compared to Warren who had to face less serious ones. Mr. Davis and Mr. Warren are not expected to testify to the trial of the two other defendants, one of which is expected to serve prison time while declining to take deals that would require them to plead guilty. Dewey & LeBoeuf LLP declared bankruptcy in 2012 and was previously one of the most famous firms in the United States.
