| NEW YORK
NEW YORK May 8 A Manhattan jury on Monday
convicted a former top executive of the now-defunct U.S. law
firm Dewey & LeBoeuf of defrauding investors while acquitting
another executive, roughly 19 months after an earlier trial
ended with a hung jury.
The former CFO, Joel Sanders, was convicted in Manhattan
state court of securities fraud and conspiracy charges. The
firm's former executive director, Stephen DiCarmine, was
acquitted of the same charges.
Manhattan District Attorney Cyrus Vance said that with
Sanders' conviction, "a top executive has been held
Sanders' lawyer, Andrew Frisch, said he expected to get the
conviction overturned on appeal.
Sanders is scheduled to be sentenced on Oct. 6, according to
Dewey & LeBoeuf, which once had close to 1,400 lawyers, went
bankrupt in May 2012, unable to pay for the lavish compensation
packages it had promised to recruit star partners. The collapse
was the largest of any law firm in U.S. history.
The criminal case against its executives, which originally
also included former chairman Steven Davis, was one of the most
significant white-collar prosecutions brought by Vance since he
took office in 2010.
Prosecutors claimed the executives used illegal accounting
adjustments between 2008 and 2012 to conceal the firm's
financial difficulties from investors in its bonds, including
Bank of America Corp and HSBC Holdings Plc.
Seven lower-level employees pleaded guilty to criminal
charges in connection with Vance's investigation.
The first trial for the three executives ended in October
2015 when jurors, after four months of testimony and a month of
deliberations, declared themselves hopelessly deadlocked on most
After that trial, Justice Robert Stolz dismissed the most
serious charge, grand larceny. Davis struck a deal with
prosecutors to avoid a second trial, agreeing to a five-year ban
from practicing law in New York.
The second trial for Sanders and DiCarmine began in
Joan Vollero, a spokeswoman for Vance's office, said the
office was disappointed with the acquittal of DiCarmine but
respected the jury's decision.
DiCarmine's lawyer, Rita Glavin, said he was "an innocent
man from the beginning."
"It's a case that never should have been brought and we are
grateful to the jury for recognizing that there is no merit to
the charges," she said.
The firm was created in 2007 with the merger of two
established firms - Dewey Ballantine, which was founded in 1909,
and LeBoeuf, Lamb, Greene & MacRae, which started in 1929.
(Reporting By Brendan Pierson in New York; Editing by Bill