Citibank has forcefully denied allegations by a former Dewey & LeBoeuf lawyer that the bank conspired with the now-defunct law firm to woo lateral partners with a Ponzi-like scheme aimed at paying off Dewey’s debts to the bank, writes the Am Law Daily.
In a 25-page filing made on Wednesday (12 September) in New York federal court, Citi asserts that partners should have done their own research into the firm’s financial condition and that it was not the bank’s responsibility to warn them. Citi also lays out why it believes it deserves repayment of a loan it extended to ex-Dewey partner Steven Otillar, who borrowed $207,000 (£128,000) from the bank in 2011.
