Acting Supreme Court Justice Robert Stolz dismissed 15 counts of grand larceny against ex-CFO Joel Sanders and former executive director Stephen DiCarmine. The pair would have faced jail sentences of up to 25 years each had they been convicted on those charges. However, the judge denied their dismissal bid and ordered them to trial in September to face charges of conspiracy, scheme to defraud and violation of securities fraud.

The firm’s former chairman Steven Davis accepted a DPA in January to avoid a second trial; he has been barred from practicing law in New York or acting as an officer of a publicly traded company for five years. Former client relations manager Zachary Warren made a similar agreement last month and is set to carry out 350 hours of community service.

The first trial of Mr Davis, Mr Sanders and Mr DiCarmine last October ended with the judge declaring a mistrial after three weeks of jury deliberations. The trio had been accused by prosecutors of deliberately inflating revenue at Dewey and using accounting tricks to comply with covenants over its debt arrangements. Mr Warren, who was being tried separately, was set to face a jury next month.

Bryan Cave partner Austin Campriello is representing Mr DiCarmine and Andrew Frisch, who runs his own New York boutique, is representing Mr Sanders. Sources: Bloomberg BNA; Legal Business