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The 41-page indictment charges Stewart with securities fraud, conspiracy, obstruction of justice and making false statements â€â€? charges that carry up to 30 years in prison and $2 million in fines on Dec A fascinated public has watched Stewart try to keep her highly profitable public persona intact, doling out advice on decorating or preparing a tasty dinner on television, while news headlines have focused on the criminal cases of close friends or her legal troubles Martha Stewart Living Omnimedia reported sales of $295 million and a staff of 580 last year Bacanovic was charged with five counts, including perjury and obstruction of justice in the criminal indictment Waksal has admitted he tipped off his daughter Aliza to sell ImClone stock before it plummeted on the bad news Or, Morvillo asked: "Is it because she is a woman who has successfully competed in a man's business world by virtue of her talent, hard work and demanding standards?" At a news conference, Manhattan U She was not charged with insider trading, a more difficult charge to prove than fraud At a hearing before U But he has not implicated Stewart, and his plea was not part of an agreement to cooperate with prosecutors Still, according to the government, Bacanovic's tip on the Waksals was funneled through Douglas Faneuil, an assistant who pleaded guilty last year to a misdemeanor charge of taking gifts to keep quiet about Stewart's stock sale Stone-faced and speaking deliberately, Stewart told a federal judge: "Not guilty Federal prosecutors in Manhattan accused Stewart of selling stock in December 2001 based on illegal privileged information â€â€? then covering her tracks and lying to investigators and shareholders The indictment does not claim Stewart had specific knowledge of the FDA decision â€â€? only that the Waksals were planning to sell S Her attorney Robert Morvillo said Stewart was being unfairly prosecuted â€â€? because of her extraordinarily high profile, perhaps, or to divert attention from its failure to quickly prosecute white-collar executives from Enron and WorldCom, which were engulfed by mammoth accounting scandals Waksal could get six to seven years in prison, plus fines The company produces Martha Stewart Living and Martha Stewart Weddings magazines, a newspaper column, a television show and the popular Martha Stewart Everyday line of home products, like towels and sheets Under federal guidelines, Stewart and Bacanovic both would likely face far less than the maximum prison sentences if they were convicted on all counts : http://www Stewart has denied she was tipped off The Securities and Exchange Commission on Wednesday filed a lawsuit leveling similar charges and sought to ban Stewart from ever leading a public company â€â€? including her own media concern, Martha Stewart Living Omnimedia But the resulting scandal has hung over her media empire of self-branded home products, TV appearances and magazines on cooking and decorating It includes publishing, television, merchandising, Internet commerce and direct mail Stewart's sale of the stock came one day before the Food and Drug Administration announced it would not review ImClone's application for approval of Erbitux, which the company had touted as a promising cancer drug : http://www Prosecutors and securities regulators also charged Peter Bacanovic, Stewart's stockbroker, who the government says fed insider information to Stewart through an assistant com The scandals had affected earnings at the company, which have been slumping The charges against him carry up to 25 years in prison and up to $1 The charges spell not just serious legal headaches for Stewart, but a crisis for her company, which has struggled with a publicity nightmare since she first became embroiled in the stock scandal a year ago The government also said Bacanovic altered his personal notes about Stewart's portfolio after he learned the government was investigating her, trying to create the impression he and Stewart had a prior agreement to sell ImClone if it fell below $60 a share 27, 2001 â€â€? the day before an unfavorable government report on ImClone sent its stock price tumbling She pleaded innocent to all charges Revenue in the first quarter of the year dropped 15 percent from the same period a year earlier He also pleaded innocent to all charges Bacanovic was set free without bail until his next court date 25 million in fines The judge ordered her to notify authorities three days ahead if she plans to travel abroad "Martha Stewart is being prosecuted not because of who she is but because of what she did," he said His defense team is seeking a lighter sentence, and prosecutors are seeking a heavier one â€â€? claiming Waksal cheated ImClone shareholders as far back as 1986 Stewart told The New Yorker magazine in January she has lost about $400 million because of the company's declining value, legal fees and lost business opportunities Stewart went so far as to delete a computer log of a phone message in which Bacanovic told her he thought ImClone was "going to start trading downward," according to the indictment The criminal indictment says Stewart unloaded her shares of ImClone based on illegal inside knowledge that the family of ImClone founder Samuel Waksal was planning to sell its shares ahead of the government news The securities-fraud charge claims Stewart deliberately misled shareholders in her company, Martha Stewart Living Omnimedia, last summer, playing down the ImClone investigation in a clear attempt to keep her company's stock price from falling And shares of the company have fallen from $19 to just over $10 on Wednesday Attorney James Comey told reporters the case was about Stewart's lies â€â€? to the SEC, the FBI and to her own investors imclone marthastewart Stewart arrived at the Manhattan courthouse with her lawyers at midday, stepping out of a car and shielding herself from light rain with an off-white umbrella District Judge Miriam Goldman Cedarbaum, Stewart was released without bail until her next court appearance June 19 com ImClone Systems Inc S The SEC suit asks the court to force Stewart and Bacanovic to pay more than $45,000 â€â€? the amount the government claims Stewart saved by dumping ImClone stock before the bad news reached Wall Street â€â€?â€â€?â€â€? On the Net: Martha Stewart Living Omnimedia Inc " The indictment resulted from an investigation into Stewart's decision to sell nearly 4,000 shares of biotech drug maker ImClone Systems Inc Stewart is a friend of ImClone founder Waksal, who is to be sentenced next week in Manhattan federal court after pleading guilty to six counts in the insider-trading scandal Stewart Pleads Innocent in Stock Scandal Jun 4, 4:43 PM EST Martha Stewart, the prim perfectionist who became a cultural paragon of taste, style and "good things," was indicted Wednesday in a stock trading scandal that threatens her hold on her media empire and could land her in prison ImClone's stock subsequently plunged She swept past reporters without saying a word "Faced with the complexity of the case and of the connected risks, Ms A hospital statement said that Mantovani was hospitalized for tests in her 31st week of pregnancy and that an urgent Caesarean section was performed after tests showed that the male fetus was suffering from reduced oxygen flow via the blood Nicoletta Mantovani gave birth on Monday by Caesarean section, said Dr One of Pavarotti's Twins Born Dead Jan 14, 9:51 AM EST Luciano Pavarotti's companion has given birth prematurely to a girl, but a twin male fetus was born dead after a pregnancy complicated by an extremely rare condition, a Bologna hospital said Tuesday The other two embryos were normal and had separate placentas, it said The hospital said Mantovani had a molar pregnancy, a condition in which there is placenta but no embryo Mantovani was told that there was a high risk of miscarriage and that she could develop severe high blood pressure if she went ahead with the pregnancy, the hospital said The opera star and Mantovani, who had been the singer's secretary, have been living together since 1996, when the couple's love story took gossip columns by storm Mantovani, 33, was also doing well, Bovicelli said Mantovani, with courage and uncommon determination, decided, together with Maestro Luciano Pavarotti, to go on with the pregnancy," the hospital said 7 kilograms (3 In the few, rare cases of similar circumstances, no baby survived, the hospital said Luciano Bovicelli, director of the Gynecological and Obstetrical Clinic at Sant'Orsola Polyclinic Pavarotti has three children from his marriage to Adua Veroni, who managed his multi-million-dollar business affairs 8 pounds) at birth Bovicelli said the girl was breathing on her own, and he called her condition good considering she weighed only 1 |
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