Lawyers for former Dewey leaders win points on cross-examination of key witness
Defense lawyers sought to establish during cross-examination on Monday that Dewey’s former chairman and its former executive director weren’t aware of improper accounting procedures.
The lawyers questioned former Dewey finance director Francis Canellas, who is cooperating with prosecutors in exchange for a lighter sentence, report the Am Law Daily and the Wall Street Journal Law Blog.
According to the Law Blog, Canellas testified under cross-examination that Davis had not instructed him to make improper accounting adjustments and he never advised Davis that such adjustments were being made. The Am Law Daily coverage says Canellas testified that former executive director Stephen DiCarmine never told him to make false accounting entries, and he never told DiCarmine about improper adjustments.
Both stories recite a question by lawyer Elkan Abramowitz, who represents former chairman Steven Davis. Abramowitz asked Canellas whether he knew of a specific time when Davis and DiCarmine were aware of any wrongdoing. “You did not pinpoint a moment or a meeting where you could say that you know that Steve and Steve knew about the false adjustments?” Abramowitz asked. Canellas acknowledged he could not.
Abramowitz also asked Canellas about an email, copied to Davis, in which Canellas was asked to bring “bring the list of the ‘accounting adjustments’ you’ve come up with so far,” to a meeting.
Abramowitz asked Canellas whether there was anything “per se inappropriate about the term ‘accounting adjustments’ ” and whether it was “a red flag for anything improper.” Canellas acknowledged there was nothing per se inappropriate with the term and it was not a red flag.
Davis, DiCarmine and chief financial officer Joel Sanders are accused of deceiving Dewey’s lenders and bond buyers about firm finances.
