A former associate at the defunct law company Dewey & LeBoeuf has charged Citibank of motivating him to sign up for a economical financial loan to invest in his share in Dewey while concealing the law company's unsafe economical state.The former associate, Steven Otillar, registered his claim in government assess in New You are able to on Wednesday in reaction to a assess action in May in which Citibank charged him and his spouse of defaulting on the $209,000 economical loan.
In the 29-page counterclaim, Otillar's attorney, Sue Davis Chaitman, said inner Citibank records exposed the bank realized Dewey had misreported its 2010 economical details to the legal journal United states Lawyer.
A Citibank speaker did not instantly reply to a demand for opinion on Wednesday. Neither did a attorney for Citibank.
According to the assess action, Citibank's inner information indicated that Dewey's income truly was $759 thousand, some $150 thousand less than the $910 thousand Dewey exposed to the United states Lawyer.
Citibank's information also exposed that Dewey's income per associate was $707,000, when the company exposed a figure of $870,000 to United states Lawyer, the assess action said.
Had Citibank revealed the facts it realized about Dewey's finances, Otillar would not have implemented the economical loan when he signed up with Dewey from Chef & Mackenzie, it said.
The assess action also suggested that Citibank had a fiduciary responsibility to reveal the details it had about Dewey's finances when it provided him the economical loan in Sept 2011.
In assess records last Sept, Citibank said it due no such responsibility to Otillar and that he "offers only his rumours that because Citibank was Dewey's long time loan provider, it must have had details that was unidentified and not available to Otillar."
Chaitman said Otillar does not owe Citibank payment on the $209,000 economical loan and required corrective loss to be identified at a potential court test.
The case is before Judge Louis Stanton in government assess in New You are able to.
Dewey once employed more than 1,000 attorneys in 26 workplaces globally. It registered for bankruptcy in May 2012 in a failure that has mostly been linked to settlement assures the company provided to some of its associates.
