Hedge Fund Madam, Comptroller Candidate Arrested In Drug Case

Aug 8 2013 | 9:50am ET

Kristin Davis, the former hedge fund administrator who spent four months in prison for running a prostitution ring, may be heading back to jail—and not to the high political office she seeks.

Davis was arrested this week and charged with illegally selling prescription pills. Davis was released on $100,000 bond and plans to plead guilty to the four counts, each of which carries a maximum 20-year sentence.

It is unclear how her arrest will impact her campaign for New York City comptroller. Davis, who ran for governor three years ago and had been mulling a run for mayor, leapt into the comptroller's race when former Gov. Eliot Spitzer entered it.

Spitzer was forced from the governorship amidst a prostitution scandal; Davis has said that he was a client of her service, a charge he has denied and which she has failed to prove.

Davis was arrested for selling Alprazolam, Ambien, Oxycodone and Xanax to a dealer who was working with the Federal Bureau of Investigation. The sales netted her several thousand dollars, but also her voice allegedly on tape; at one meeting, Davis was allegedly recorded saying, "I got you 30 Xanax. 41 is the number of Ambien."

Davis was also a consumer of the drugs, with sales of the prescription pills and the illicit drug ecstasy occurring almost every month for the last four years between the two, prosecutors said. Davis would provide the pills she bought to attendees of her house parties, the complaint alleges.

"Ms. Davis was accused in a hearsay complaint based upon the unsworn statements of an admitted drug dealer seeking leniency at the expense of a high-profile target," he lawyer said.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...