Denenberg case adjourned as parties talk settlement

Posted

A judge last week adjourned deadlines that she previously set for the defense to file legal papers in the case of Davidoff Hutcher & Citron LLP v. David W. Denenberg, in which the New York law firm is suing Denenberg, a Nassau County legislator and former DHC partner, for allegedly defrauding a corporate client of $2.3 million.

Denenberg, his attorney Jeffrey Gold and a representative of DHC said this week that the judge, Joan Kenney of Manhattan’s State Supreme Court, approved the delay while the lawsuit’s parties negotiate a settlement.

The parties are “very, very close,” said Don Middleberg, the DHC representative, adding that the firm “fully expect[s] this to go through.”

DHC’s allegations came amid a hotly contested election race between Denenberg (D-Merrick) and County Legislator Michael Venditto (R-Massapequa) for an open State Senate seat, in a year when Democrats and Republicans are battling for control of the chamber. Denenberg announced the end of his campaign just hours after DHC filed its suit last month, but the deadline for parties to nominate candidates for state offices had passed, so Denenberg’s name remains on the ballot in the 8th Senate District.

The suit charged that Denenberg billed a client, Systemax, Inc., for fictional work, defrauding the global technology company over eight years, and that he received hundreds of thousands of dollars in reimbursements from DHC for expenses that he did not actually incur. The firm said that it fired Denenberg in June after discovering the alleged fraud. The suit, filed on Sept. 23, demanded that Denenberg repay $3.7 million — the entirety of his compensation from 2006 through 2014.

“My family, the electorate, the campaign and this position are way too important to be subject to outrageous allegations and negative attacks against me personally,” Denenberg said on Sept. 23.