Classic Prisoner's Dilemma Scenario

Update 2014 The first set of charges against Dewey LeBoeuf insiders have just been filed in early March 2014. The clock is tick for how long connected persons might be able to strike a deal with prosecutors. We still believe that some big City banks are involved in Racketeering conduct, and the RICO statue could reap immense windfalls to the U.S. Treasury.

The bad guys are mistakenly confident that they won't be put into a chair to testify, or even asked questions in a preliminary investigation. That's why they have been able to sleep over the last couple years, and even after Dewey LeBoeuf was forced "in play" as to their financial existence. However, readers of BankruptcyMisconduct are better informed, and already know about the rest of the story.

In the "old days", things were sooo comfy and polite. "Honor Among Thieves" wasn't just a B Movie about middle or far Eastern thugs -n- pirates. It was the foundation of the post modern legal industry's business model. The times, they are a changing. That darn internet is rearing its ugly mirror, and the commercial media's employment by forces of corruption is proving irrelevant.

Shan't we just come out and say it? Prosecutors are having their feet held to the fire on the Dewey LeBoeuf criminal enterprise. Lawyer prosecutors who thought they'd pay their dues wearing white hats as part of a costume before their revolving door entry into private practise, hedge funds, finance, and politics; are facing their own rude awakenings. Damn those Harvard Guidance Counselors, the real world has been educated by "Survivor".

Yes, Virginia ... all persons who worked on the Dewey LeBoeuf private placement transaction are now in play. Of course, lawyers can hope for nothing better than a finance geek upon whom to blame things. The truth is so flaccid in the lily white library loving hands of a lawyer. Finance guys are so used to speaking in clear exact terms, so proud of themselves, so habituated into taking as much credit as humanly possible for every work product with which they where associated.

From a crooked lawyer's point of view, a corp finance green horn is his best scapegoat. From a victimized lawyer's point of view, a corp finance green horn is the best chance to intertwine some deep pockets (J.P. Morgan) into the sad group who'll have to pay the bank debt, and other priority liabilities.

Note to the J.P. Morgan finance pawns (that's up to middle management, at least) and in-house guns:

Dude, this is shaping up to be the perfect storm coming after your ass. Do you trust those lawyers ... really? Did you read about how BankruptcyMisconduct predicted that lawyers within Dewey LeBoeuf would inform against their own leaders? (read: Informant Inclination Gradient) Put it this way, the money owed by certain former partners, including money already received but may be lost in "claw back" actions by the trustee, will be greatly reduced if some of their former management, or competing partners, are found to have been involved in crime. Thus, there is great incentive for nearly all lawyer / creditors / co-debtors of the former Dewey LeBoeuf to "allow" the private placement action to be ultimately ruled a fraudulent conveyance, or explicit criminal act.

J.P. Morgan and it shareholders would be forced to the table to help bail out these lawyers. Do you trust lawyers? Do you trust them more if they've genuinely been burned themselves, to the tune of millions?

Oh, you pitiful top-ten business school grad ... You are now a pawn in this battle between the dozens of Dewey LeBoeuf managing lawyers and any number of the non management lawyers. There are on the order of One Thousand non-management lawyers victimized at Dewey LeBoeuf. Do you really believe that every one of the remaining thousand lawyers will suffer without a fight? Can you say collateral damage?

Have you read on BankruptcyMisconduct that the dirty managing lawyers from Dewey LeBoeuf are hiring up (a/k/a conflicting out) all of the best criminal lawyers in New York City?

Will you be happy with the last pick of criminal counsel? At the end of the day, J.P. Morgan will be able to suffer any amount of dollars which they may be forced to contribute to the Dewey LeBoeuf bailout. However, in your individual circumstance, it will be the destruction of your career with the added insult of hundreds of thousands, if not millions, in legal fees for you. Statistically speaking, throw in a divorce for yourself at the end of the stressful, expensive, consuming process. What proactive measures could you possible take to protect yourself and your family?

We don't want to be the bearer of bad news. We want to be constructive. Honestly speaking, given the choice we'd rather save a finance geek than a lawyer. So here is a freebie for you: