(Adds statement regarding Sanders)
By Karen Freifeld
NEW YORK, March 28 (Reuters) - A New York judge on Fridayunsealed the records of six former Dewey & LeBoeuf employees whopleaded guilty in connection with accounting fraud at the lawfirm.
The records offer a fresh peek into the government's case against top executives at the defunct elite international lawfirm and how key witnesses might testify against them.
The employees, who range from Dewey's controller to itsbilling director, agreed to cooperate with prosecutors who havetargeted the firm's top management.
Dewey's former chairman, Steven Davis, 60, ExecutiveDirector Stephen DiCarmine, 57, and Chief Financial Officer JoelSanders, 55, were charged March 6 with taking part in a schemeto cheat banks and investors as they struggled unsuccessfully tokeep the law firm alive.
Dewey & LeBoeuf collapsed in 2012, the largest U.S. law firmto file for bankruptcy. If convicted of the top counts againstthem, the executives each face up to 25 years behind bars.
Prosecutors have accused the executives of using accountingfraud so that Dewey & LeBoeuf could get and keep more than $200million in financing.
The firm's lenders included JPMorgan Chase & Co, Citigroup Inc's private banking unit, Bank of America Corp and HSBC Holdings Plc. Dewey & LeBoeuf also had a $150million bond offering in 2010.
The court records offer detailed admissions of wrongdoingbut hazy accounts of the direct evidence prosecutors haveagainst the three executives and Zachary Warren, 29, alower-level employee also charged in the case.
Thomas Mullikin, 53, the controller, said he had onlyinfrequent contact with Sanders, "even less" frequent withDiCarmine, and no contact with Davis.
"I never met the firm's chairman," Mullikin said in hisformal admission to wrongdoing.
The controller pleaded guilty to a felony charge known asscheme to defraud. If he cooperates, prosecutors said they wouldrecommend a jail sentence of five months.
The other staffers who pleaded guilty include BudgetDirector Ilya Alter, 38, Revenue Support Director Dianne Cascino55, Accounting Manager Jyhjing "Victoria" Harrington, 42,Partner Relations Specialist David Rodriguez, 39, and BillingDirector Lourdes Rodriguez, 43.
Their crimes range from falsifying business records tomisdemeanor and felony counts of scheme to defraud.
Prosecutors said in the agreements they would recommend nojail time for the five, if they meet certain conditions.
Dewey's ex-Finance Director Francis Canella also pleadedguilty in the case. His record was unsealed on Thursday.Prosecutors will recommend a sentence of two to six years inprison, if he cooperates, according to his agreement.
Lawyers for the top executives, who have pleaded not guilty,said the witnesses had not provided direct evidence againsttheir clients.
Still, the admissions contained comments that prosecutorsmay use in an effort to implicate Sanders.
"I was instructed by Joel Sanders to create invoices,knowing that they would not be sent to clients," LourdesRodriguez said in her statement.
The former billing manager said she understood the invoiceswere "to hit certain numbers" that were required by the firm'sloan agreements with banks.
A lawyer for Warren could not immediately be reached.
The case is New York v Davis et al, New York State SupremeCourt, New York County. (Reporting by Karen Freifeld; Editing by Andrew Hay and DanGrebler)
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