History[ edit ] ImClone's stock price dropped sharply at the end of when its drug Erbituxan experimental monoclonal antibodyfailed to get the expected Food and Drug Administration FDA approval. It was later revealed by the U. Securities and Exchange Commission that prior to the announcement after the close of trading on December 28 of the FDA's decision, numerous executives sold their stock.
View results Neither Stewart, 62, nor Bacanovic testified at the trial, which began Jan. Attorneys for Bacanovic called just a handful of witnesses while Morvillo called only one witness.
The conviction came exactly a week after U. The charge -- which the judge had called "novel" during the trial -- accused Stewart of using her own statements that she was innocent as a ploy to mislead investors in her company, Martha Stewart Living Omnimedia.
Martha Stewart has been found guilty on all four counts. CNNfn's Chris Huntington reports. ResearchEstimates stock rallied early Friday on hopes for a favorable verdict but then plunged The company said it would survive but analysts said the verdict was a serious threat.
Stewart quit as chairman and CEO of Martha Stewart Living after she was indicted last summer but stayed on as chief creative officer.
For more on the company's outlook, click here. Despite the intense publicity surrounding the trial -- the most closely watched of the recent corporate fraud cases -- the stock trade at its center involved a relatively small amount of money.
For more on the scandals, click here. Ironically, Erbitux, the ImClone drug at the heart of the scandal, was approved by regulators last month to treat certain forms of cancer. Prosecutors argued that Stewart sold her ImClone stock only after Bacanovic told his assistant to tip her off that ImClone founder Sam Waksal was trying to sell.
Bacanovic was broker to both Stewart and Waksal, who is serving a seven-year prison term after pleading guilty to securities fraud over his family's sale of ImClone shares.On a Friday morning a few weeks ago, the man who's trying to put Martha Stewart in jail was leaning back in his brown leather chair in his office downtown in the Federal Courthouse Building at 1.
On December 27th, Martha Stewart was contacted with some information that was clearly not public knowledge at the time. Her broker, Peter Bacanovic, had attempted to contact Stewart to inform her that ImClone shares were going downward and the Waksals were selling all their shares.
Stream full episodes of new and old classics. Watch Martha at home or on the go! A $1 authorization hold will be placed on your card. When your free day trial ends, the hold converts to a $ USD charge as a recurring subscription.
Your card will be charged the equivalent amount in USD $ If you cancel before your trial ends, you won’t be charged. You will be charged $ USD as a recurring subscription. On December 27th, Martha Stewart was contacted with some information that was clearly not public knowledge at the time.
Her broker, Peter Bacanovic, had attempted to contact Stewart to inform her that ImClone shares were going downward and the Waksals were selling all their shares. An entrepreneur's path is rarely a straight line, a lesson lifestyle icon Martha Stewart has learned firsthand. From her early career as a model to her time as an institutional stock broker on.