Legal News

Former S&C Partner Resigns from Bar for Bilking Clients, Firm

By Dan Slater

Back in March, we wondered about the absence of Carlos Spinelli-Noseda, a former Sullivan & Cromwell partner who’d left the firm without explanation. At the time we called up firm leader Rodgin Cohen, but he declined to comment.

Today, the NYLJ’s Tony Lin nails the story: Spinelli-Noseda (Yale, Harvard law) has reportedly resigned from the bar for billing clients and the firm for more than $500,000 in fraudulent expenses.

In an affidavit of resignation he submitted to the disciplinary committee of the First Department, Spinelli-Noseda (pictured) admitted he could not successfully defend himself against charges of professional misconduct, reports Lin. Spinelli-Noseda said his misconduct dated from about July 1998 to February 2008, with around two-thirds of the falsified expenses arising in client matters. He said he is working with the firm “to quantify the precise amounts involved and to make appropriate restitution.”

In a statement S&C reportedly said: “Upon discovery, the matter was promptly referred to the appropriate authorities. The Firm fully cooperated with those authorities, contacted affected clients and made restitution.”

Around the time Spinelli-Noseda was leaving S&C, Samuel Fishman, a former Latham & Watkins partner, pleaded guilty to one count of mail fraud for bilking clients out of more than $300,000 to pay for personal and non-existent business expenses. In 2006, a former WilmerHale IP partner relinquished his law license after admitting to conduct similar to Fishman’s, including falsifying expense reports and assigning associates to perform “pro bono” work for friends and family. He claimed more than $109,000 in false personal expenses. Meanwhile, Willkie Farr & Gallagher and the former Kronish Lieb Weiner & Hellman have also terminated partners for fraudulent conduct that involved seeking reimbursement for personal expenses.

Full post as published by Law Blog - WSJ.com on September 23, 2008 (boomark / email).