Ex-Dewey Chairman Davis Strikes Deal to Avoid Second Fraud Trial

  • Davis barred from practicing law in New York under deal
  • Mistrial declared in October in case of three former officials

The former chairman of defunct Manhattan law firm Dewey & LeBoeuf LLP struck a deal with the government to avoid a second prosecution after the fraud case against him ended in mistrial.

Steven Davis, who was accused of manipulating financial statements for years to hide the firm’s rising debt and falling revenue, didn’t admit to any wrongdoing under a so-called deferred prosecution agreement reached Friday with Manhattan District Attorney Cyrus Vance Jr.

Under the agreement, Davis will be barred from practicing law in New York or acting as an officer of a publicly traded company for five years. He’s required to appear in court next January to assess his compliance. New York Supreme Court Judge Robert Stolz in Manhattan approved the deal, said Joan Vollero, a spokeswoman for Vance.

“Mr. Davis is grateful that after a careful review of the state of the evidence against him, the DA’s office decided not to retry him.” defense attorney Elkan Abramowitz said in a statement. “It is now time for him to move on with his life.”

A four-month trial of Davis and two other former firm executives ended in mistrial in October after jurors deadlocked on charges of fraud, grand larceny and conspiracy. The two others, former Executive Director Stephen DiCarmine and Chief Financial Officer Joel Sanders, have so far rejected plea deals urged by the government. A second trial for both men is scheduled to start in September.

The case is People v. Davis, 773-2014, New York State Supreme Court, New York County (Manhattan).

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