Criminal fraud proceedings against former Dewey leaders end in mistrial
Jury fails to reach a verdict on most serious charges, including grand larceny, levelled against three former executives
October 20, 2015 at 05:46 AM
4 minute read
The original version of this story was published on Law.com
The criminal trial of three former Dewey & LeBoeuf executives on fraud charges has ended in a mistrial after four months of court proceedings and a second trial may have to be run.
The trio - former firmwide chairman Steven Davis, former executive director Stephen DiCarmine and former chief financial officer Joel Sanders - were each charged with conspiracy, scheme to defraud, securities fraud under New York's Martin Act, 15 charges of grand larceny and over 30 charges of falsifying business records.
All the charges related to the 2012 collapse of Dewey, which remains the largest ever law firm collapse in history.
The men had faced as long as 25 years in prison if convicted of the most serious charge of grand larceny.
However, a mistrial was declared yesterday after the jury failed to reach a verdict on more than 90 counts.
Cyrus Vance, the Manhattan district attorney bringing the prosecution, issued a statement that said his office would undertake a "thorough review of the case".
It said: "We continue to believe in the strength of the evidence and that the defendants' actions broke state law."
Earlier this month they were cleared of some of the criminal charges brought against them, in two partial verdicts that came over a year after the criminal fraud charges were first levelled against them.
Bringing the charges in March 2014 Vance said management had hidden the firm's true financial condition from creditors, investors, auditors and partners.
The criminal trial of three former
The trio - former firmwide chairman Steven Davis, former executive director Stephen DiCarmine and former chief financial officer Joel Sanders - were each charged with conspiracy, scheme to defraud, securities fraud under
All the charges related to the 2012 collapse of Dewey, which remains the largest ever law firm collapse in history.
The men had faced as long as 25 years in prison if convicted of the most serious charge of grand larceny.
However, a mistrial was declared yesterday after the jury failed to reach a verdict on more than 90 counts.
Cyrus Vance, the Manhattan district attorney bringing the prosecution, issued a statement that said his office would undertake a "thorough review of the case".
It said: "We continue to believe in the strength of the evidence and that the defendants' actions broke state law."
Earlier this month they were cleared of some of the criminal charges brought against them, in two partial verdicts that came over a year after the criminal fraud charges were first levelled against them.
Bringing the charges in March 2014 Vance said management had hidden the firm's true financial condition from creditors, investors, auditors and partners.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllBig Law Heavyweights Wrestle in High-Stakes Sale of Venezuela’s Citgo
Cleary vs. White & Case: NYC Showdown Over $5 Billion Brazilian Bankruptcy
Singapore's Drew & Napier Secures $3.5B Award in Civil Suit
Trending Stories
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250