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Former Dewey partner accuses Citibank of concealing firm’s financial troubles

Citibank is suing Steven Otillar for defaulting on a $207,000 capital loan, but he says the bank ignored its duty to disclose Dewey’s monetary struggles

The plot has thickened in the Dewey & LeBoeuf saga, courtesy of a former partner who has accused Citibank of fraud in connection with the firm’s collapse.

Steven Otillar took out a $207,000 capital loan from Citbank when he joined the now-defunct firm as a partner in 2011. According to Citi, the loan agreement included a clause that triggered default of the loan if Otillar left the firm or if Dewey collapsed. When the ex-partner did not repay the loan following Dewey’s Chapter 11 bankruptcy filing, Citi sued him. The bank recently sought summary judgment, arguing that Otillar has no legal grounds to claim that he does not owe loan payments.

Alanna Byrne

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