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Charges against former U.S. senator to be dropped
Stevens, a Republican who served longer than any other U.S. senator before losing a November re-election race, was convicted in October of seven counts of lying on a Senate disclosure form to conceal $250,000 (174,000 pounds) in gifts and home renovations from an oil industry executive and other friends.
Allegations of prosecutorial misconduct have delayed his sentencing.
U.S. Attorney General Eric Holder reviewed the case himself and decided not to continue to defend the conviction in the face of questions about prosecutors' actions, National Public Radio reported on its website.
Holder also was influenced by the age of Stevens, 85, and the fact that he is no longer in the Senate, NPR reported.
Stevens, who had a reputation for being hot-tempered during his career in Washington, was a ranking member of the Senate Appropriations Committee and known for his ability to bring federal funding to his state.
(Editing by Paul Simao)