Mistrial in Case Against 3 Ex-Leaders of Major NYC Law Firm

Mistrial in Case Against 3 Ex-Leaders of Major NYC Law Firm - ABC News

The trial of three former executives accused of committing fraud as their powerhouse law firm sank into bankruptcy ended Monday in a mistrial.

Jurors had been deliberating for 21 days and said they were deadlocked. Judge Robert Stolz announced the mistrial in state Supreme Court in Manhattan.

Dewey & LeBouef LLP ex-chairman Steven Davis, former chief executive Stephen DiCarmine and former chief financial officer Joel Sanders were facing charges including grand larceny and securities fraud. Authorities accused them of using accounting tricks and deceptions as the firm struggled to survive before its collapse in 2012. They pleaded not guilty.

At its biggest, the firm had nearly 3,000 employees around the world. When it collapsed in 2012, the shockwave was felt throughout the legal community as thousands of employees were left unemployed and creditors scrambled to get back hundreds of millions of dollars they were owed.

The lineage of the firm went all the way back to the early 1900s and among its partners was former Manhattan DA, New York governor and Republican presidential nominee Thomas E. Dewey.

The Dewey & LeBouef law firm was created in 2007, when two New York corporate law firms, Dewey Ballantine LLP and LeBoeuf, Lamb, Greene & MacRae LLP, joined. The new firm had clients including The Walt Disney Co. and Dallas Mavericks owner Mark Cuban, but the global economic meltdown in 2008 harmed its prospects.

Prosecutors said they would review the case to see if there would be a retrial.

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