Former Dewey CFO should be sent to jail after missing first payment on $1M fine, prosecutors say

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- Former Dewey CFO should be sent to jail after missing first payment on $1M fine, prosecutors say

The former chief financial officer of Dewey & LeBoeuf should be jailed after missing the first of three payments on a $1 million fine, according to the Manhattan District Attorney’s Office.

Joel Sanders’ assets are more than enough to pay the entire fine, imposed after his conviction for misleading lenders and bond buyers about the firm’s finances before its 2012 collapse, prosecutors say in a court filing.

“Sanders has shown, once again, that he does not think any rules apply to him,” the filing says. Law.com has coverage in stories published by the New York Law Journal and the Daily Business Review.

The first payment was due on Sept. 12. On Oct. 25, Sanders filed a motion for resentencing because of “dire financial circumstances” that also alleged the fine was unconstitutionally excessive.

Sanders was sentenced in October 2017 to 750 hours of community service and ordered to pay the $1 million fine over a three-year period. Sanders did not get any jail time, but Judge Robert Stolz of New York City said failure to pay the fine would land Sanders in jail until he pays up, for up to one year.

Sanders is currently the chief operating officer at Greenspoon Marder, according to the articles. Prosecutors said his annual salary is at least $375,000. He also owns a house “free and clear” in Long Island that he values at $650,000, and a beachfront, ocean-view Miami condo with a $150,000 mortgage that he values at $1 million, prosecutors say. The legal filing suggests that the residences actually are worth much more.

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Prosecutors also point to forms Sanders filed last year when he opened two securities accounts that said he had $500,000 in mutual funds and $300,000 in cash and cash equivalents.

Sanders said he wants his two adult sons live in the New York home. Prosecutors said the sons are believed to be ages 25 and 30. “Sanders is free to support any adult he chooses, but he is not free to prioritize doing so over satisfying the conditions of his sentence,” the legal filing says.

Sanders’ lawyer says Sanders paid $350,000 to Dewey’s bankruptcy trustee and has spent more than $2.5 million in attorney fees and other costs.

Sanders is supported by Greenspoon Marder co-managing director Gerald Greenspoon, who wrote a letter asking the judge to revoke the $1 million fine. Greenspoon said Sanders’ departure from the firm would be “a serious detriment.”


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