Hedge Fund Madam Cops Plea To Drug Charges

Mar 11 2014 | 8:12am ET

Hedge-fund-administrator-turned-Manhattan-madam Kristin Davis has pleaded guilty to drug charges.

Davis reached a plea deal on drug possession and distribution charges on Friday. The agreement with prosecutors will see her jailed for up to five years—far less than the 80 she originally faced. Her lawyer said he hopes she'll be able to avoid jailtime when she is sentenced on July 25.

Davis was arrested for selling a number of prescription drugs, including Oxycodone and Xanax, to a drug dealer working with the Federal Bureau of Investigation. At the time, she was running for New York City comptroller—the same office sought by former New York Gov. Eliot Spitzer, who said he was a client when she ran a prostitution ring.

"Today, Ms. Davis took responsibility for her actions," Dan Hochheiser, her lawyer, said. He added that she plans to return to school.

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