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Putting Stewart or Bacanovic on the stand would have forced them to reconcile small inconsistencies in the stories they told investigators about the ImClone sale Stewart's Defense Team Gambled and Lost Mar 6, 7:34 PM EST Facing a stock scandal that threatened to shatter Martha Stewart's carefully tended reputation and enormous fortune, her defense team made three high-stakes gambles: They let the case go to trial, kept Stewart off the witness stand and put on a defense that took less time than one of her syndicated cooking shows "We look at this as an opportunity to go to the next round," he said, "and explain to the Court of Appeals what we think went wrong in this case At trial, Stewart lawyer Robert Morvillo called just one witness, a lawyer who attended the Feb "She's much worse off than had she tried to go in and just admit the mistake "Had she admitted the mistake early on, she would have spent no time in prison," said Ajamie, who was careful to point out he was speaking in hindsight " Still, some outside lawyers said Morvillo made the best decision he could â€â€? and pointed out that any case that goes before a jury is unpredictable By the spring of 2003, with a grand jury nearing an indictment of Stewart and broker Peter Bacanovic, federal prosecutors were insisting on prison time in any plea deal with Stewart, people close to the case have said Legal experts said Stewart might have avoided prison if she had come clean then because the money at stake in the trade was so small Juror Hartridge suggested another damning element of the trial may have been out of Morvillo's control altogether " Stewart should have admitted from the beginning that she sold her ImClone Systems stock in 2001 based on a tip that ImClone CEO Sam Waksal was selling his shares, Ajamie said Without securities fraud, legal experts expect Stewart to go to prison for a year or so Had she been convicted of securities fraud on top of the other charges, she could have faced six or more years in prison Without them, no witness was able to definitively support their contention that they had a prior arrangement to sell ImClone when it hit $60 27 â€â€? persuading U He sent the notes to friends after rocky telephone encounters with Stewart The perfectionist homemaker wound up with the most crushing loss possible â€â€? a guilty verdict on all counts, and a likely new home behind bars " But Stewart made no mention of the tip in a Feb Stewart, who was briefly a billionaire after Martha Stewart Living Omnimedia went public in 1999, saved $51,000 by selling a day ahead of a damaging government report about an ImClone drug Lawyers for Bacanovic put into evidence e-mails depicting Stewart as a fierce-tempered, demanding customer of brokerage Merrill Lynch & Co And Stewart would have had to answer for an event that jurors said held considerable sway with them â€â€? her alteration, four days before she was grilled by investigators, of a phone message from Bacanovic from the day she sold ImClone Bacanovic was convicted of four counts, and cleared of a charge of falsifying a document But the move by Bacanovic's lawyers appeared to backfire by making Stewart seem unsympathetic " Her lawyers insisted Stewart was telling the truth when she said she did not recall receiving the tip that Waksal was selling ImClone shares â€â€? a tip they have conceded she did receive One juror, Chappell Hartridge, said he would have liked to hear testimony from Stewart or Bacanovic 4, 2002, interview with investigators, and she said in a follow-up interview two months later that she had no memory of knowing in advance that Waksal was selling "I would have liked to have heard from her," Hartridge said "How this even went to trial in the first place, I have no idea Instead, jurors convicted Stewart on all four counts â€â€? conspiracy, obstruction of justice and two counts of lying to investigators S "Two things I would say are true for Morvillo: One, he knows his witness, and two, he knows his facts far better than we do," said Greg Markel, chair of litigation at New York law firm Cadwalader, Wickersham & Taft Stewart did not speak to reporters after the verdict, but Morvillo began a brief statement by thanking jurors, the judge and even marshals who have guarded the courtroom during the trial He was betting that jurors would decide the defense had undermined the prosecution's case, which included nearly two dozen witnesses "They may have done more damage to Martha than they realized," the juror said "I would have loved to have heard the other side of the story 4 interview, in hopes of casting doubt on the government's version of exactly what questions Stewart was asked The judge ruled he could not argue to the jury about why the government never brought the charge He did not address questions about the strategy, but vowed an appeal of the verdict The defense questioned him for just 20 minutes Tigue and John Cuti, scored a huge victory for Stewart on Feb The e-mails were an attempt to discredit Douglas Faneuil, a former Merrill assistant and the government's star witness, as someone who was fixated on Stewart who cursed and yelled at employees there But Morvillo was cut off by the judge on a central part of his defense: that Stewart was never accused of insider trading But Morvillo, who is considered among the best white-collar criminal defense attorneys in the country, kept Stewart off the stand Morvillo and his partners at the trial, John J "She should get her money back from her lawyers," said Thomas Ajamie, a veteran Houston securities attorney District Judge Miriam Goldman Cedarbaum to drop a charge of securities fraud against Stewart He refused to estimate the value of any deal with Vivendi S oil tycoon Marvin Davis, former owner of Fox Studios S Liberty, based in Englewood, already holds a 3 Answering questions after Liberty's annual shareholders' meeting, Malone said he had not specifically talked about working with Barry Diller at USA Interactive or Viacom Inc , Sprint PCS Group and News Corp , AOL Time Warner Inc of Canada's Seagram empire and U Also believed to be among possible bidders for Vivendi's assets are Edgar Bronfman Jr Liberty Media Looking at Vivendi Assets Jun 18, 12:45 PM EST John Malone, the chairman of Liberty Media Corp , though "all bets were open " "We wouldn't rule out any sort of bizarre combinations," Malone said com entertainment assets of Vivendi Universal, the debt-ridden French conglomerate , confirmed Wednesday that his company is interested in buying the U NBC owner General Electric Co Liberty Media's principal assets include interests in Starz Encore, Discovery Communications, Inc , QVC, USA Interactive, Telewest Communications plc, Motorola, Inc Malone also said the media giant could team up with another company in acquiring the Universal film studio and theme parks, the USA and Sci-Fi cable networks and other Vivendi holdings â€â€?â€â€?â€â€? On the Net: http://www 6 percent stake in the company libertymedia and Viacom, the owner of CBS and MTV, also have shown interest |
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