Manhattan prosecutors will not retry Steven Davis, the former chairman of defunct U.S. law firm Dewey & LeBoeuf, after an earlier trial ended in a hung jury, Reuters reported on Friday. Prosecutors do plan to retry former Dewey Chief Financial Officer Joel Sanders, according to his attorney, Andrew Frisch. It was not immediately clear, however, whether the other former Dewey executive who was tried alongside Davis — Executive Director Stephen DiCarmine — would face a second trial. The three men were accused of using illegal accounting adjustments to mask the firm's teetering finances between 2008 and 2012 and convince lenders and investors, including Bank of America Corp and HSBC Holdings PLC, that the law firm was still healthy. They were charged with grand larceny, scheming to defraud and violating New York's securities law, the Martin Act. The case ended in a mistrial on Oct. 19, with a jury reporting it was deadlocked on most of the counts after more than three weeks of deliberation. It had earlier acquitted the three defendants of several lesser counts of falsifying business records.
