Judge declares mistrial in criminal trial of ex-Dewey & LeBoeuf executives

Reuters News
|
Posted: Oct 19, 2015 4:06 PM

By Brendan Pierson

(Reuters) - The judge overseeing the criminal case against three former executives of defunct U.S. law firm Dewey & LeBoeuf declared a mistrial on Monday following over three weeks of jury deliberations.

The jury sent a note on Monday indicating for the third time it was deadlocked on the major counts against former Dewey Chairman Steven Davis, Executive Director Stephen DiCarmine and Chief Financial Officer Joel Sanders, including grand larceny, scheme to defraud and violating New York's securities law, the Martin Act.

The three defendants are accused of defrauding lenders and investors by leading them into believing the firm was healthy even as it faced revenue shortfalls and a crushing debt load that led to its demise. If convicted on grand larceny charges, each of the defendants faces up to 25 years in prison.

Jurors issued partial verdicts in the case last week and the week before that, acquitting all three defendants on several lesser counts of falsifying business records.

(Reporting by Brendan Pierson; Editing by Meredith Mazzilli)