Three former executives at the defunct international firm Dewey & LeBoeuf have been acquitted by a US court of numerous charges of falsifying business accounts .
After 13 days of deliberations in New York state court, the jury yesterday gave a partial verdict where they found former chair Steven Davis, former executive director Steven DiCarmine and former chief financial officer Joel Sanders not guilty on 19, 17 and 13 counts respectively.
They were accused of defrauding and stealing from the firm’s lenders, investors and others by adjusting the firm’s accounts to mask its poor finances before the firm went bankrupt in 2012.
However the jury remained deadlocked on the remaining charges of a scheme to defraud, grand larceny, violation of the Martin Act, and conspiracy.
Michael Trotter, a partner at US firm Taylor English Duma, said: ‘It is now less likely the jury will find them guilty on the other counts. The prosecution could turn it around but I would be surprised if they did.’
The verdict was given after jurors told Supreme Court justice Robert Stolz they could not reach a unanimous verdict. According to news reports Stolz has ordered the jury to resume working towards a verdict after giving them an Allen charge, which orders jurors to work harder to reach a verdict.