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Citibank denies charges that it concealed Dewey’s financial troubles from partners

Former partner Steven Otillar accused the bank of colluding with Dewey’s management to entice partners to enroll in a loan program

Citibank is denying allegations that it fraudulently induced former Dewey & LeBoeuf partners to sign up for a capital loan program by hiding the firm’s precarious financial condition.

Former Dewey partner Steven Otillar made the claims last month, after the bank sued him for defaulting on a $207,000 loan that he had taken out to finance his initial capital contribution to the firm. According to Citi, the loan agreement included a provision that triggered default of the loan if Otillar left Dewey or the firm collapsed. After Dewey declared bankruptcy in May, the bank sued Otillar for failure to repay his loan.

Alanna Byrne

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