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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of