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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Oct. 3, 2002)
HAIR DESIGN Corp Cuts 118 Walton Dr. cross from Main Entrance to Texas A&M PLOY IT OGfiin HI I i i i Racquet Sports • Softball • Weight Equipment I Tired of waiting in lines to workout? Come see our new shipment of compact exercise equipment and start working out from your apartment or dorm! FEATURING: HORIZON ELLIPTICAL MACHINES STATIONARY BIKES Save $ 50 - $ I00 N 764-8285 (in the Fuddrucker’s Shopping Center^^^ with this coupon! 2218 Texas Ave. South J Pt+'Z-zCotA ck6ot*t Study AGroad Opportunities? Ufa can AcCp yon put tike pieces toQottkarf Visit wit(l Advisors. Professors X. Post Participants to find oaf How Stady AOroad fits into yonr fnines. Overseas T>ay Friday, OctoGer 11 1C ~ 2 A/tSC FtaGCway artd FGaqrootrt Sponsored Gy tAe Study AOroad Propram Office /" fCoor. IMzzeCe HaO€ West - 8*0-00+* Attp://studyaOroadJarHM^du . = 1^— = =H^i ^- = 1 ■ == r COMING OUT WEEK Famous Houston Lawyer & Former Singing Cadet Phyllis Frye is coming to TAMU! Friday October 4 th at 7 PM MSC 205 Other Coming Out Week Events: Mon. 6 PM Alfred Hitclicock’s ‘Rope’ Rudder 701 Wed. 7 PM Sexuality and Religion MSC 292B Fri. 7 PM Professional Development: Gender in Diversity 1-4 PM 401 Rudder For more info: httv://stuclentlife. tamu. edu/eies Office of Gender Issues Education Services Sbisa East Wing Ph: 845-1107 6A Thursday, October 3, 2002 NATIO the BATTALif Assistant guilty of silence payofi NEW YORK (AP) Prosecutors turned up the heat on Martha Stewart as a stock broker’s assistant pleaded guilty Wednesday to taking a payoff to keep quiet about an alleged insider stock trade by the queen of home entertaining. Douglas Faneuil, 27, struck a deal to testify against Stewart and others who might be charged in connection with the sale of ImClone Systems stock just before its price plunged last year. Faneuil said he had withheld the truth from regulators and FBI agents when he was first questioned about the trades. “I did not truthfully reveal everything I knew concerning the actions of my immediate super visor ... and the true reasons for the ‘tippeeV sale of ImClone stock,” Faneuil said. He pleaded guilty to a misdemeanor charge of receiving money and other valuables to keep quiet. In exchange for stonewalling investigators, Faneuil was offered an extra week of vaca tion and a free airline ticket, and was given an increase in his commission rate, according to court papers. His lawyer denied published reports Faneuil had received Knicks basketball tick ets in exchange for his silence. Faneuil worked at Merrill Lynch for Stewart’s broker, Peter Bacanovic. Immediately after the plea, the firm said both Bacanovic and Faneuil had been fired. Stewart dumped nearly 4,000 shares of ImClone just before the stock price dropped on news that the Food and Drug Administration would not review its highly touted cancer drug, Erbitux. Court papers did not identify who received the insider infor mation, but all details point to Stewart. Faneuil’s lawyer, Marvin Pickholz, asked outside court whether the “tippee” was Stewart, said: “If you guys read this infonnation and you can t fill in the blanks, you’re in seri ous trouble.” Allyn Magrino, a spokes woman for Stewart, declined to comment on Faneuil’s plea. Bacanovic’s lawyer did not immediately return a call for comment. Prosecutors are trying to determine if Stewart was tipped off by her close friend Sam Waksal, ImClone’s founder and former chief executive. He has pleaded innocent to charges he told family members to dump millions in ImClone stock before the bad news about Erbitux hit the markets. According to prosecutors, Faneuil’s boss let the “tippee” know on Dec. 27 that Waksal was trying to sell all ImClone stock he held at Merrill Lynch. “The tippee then sold all of the tippee’s shares of ImClone stock, approximately 3,928 shares, yielding proceeds of approximately $228.0(X),” the court papers said. Stewart has said she had a standing order to sell her ImClone stock if they fell below $60. Faneuil initially gave inves tigators the same account, but later changed his story' and said there had been no such order. The misdemeanor charge against Faneuil carries up to a year in prison, but under the plea bargain, he will probably get probation. “This public plea is designed to convince Martha Stewart to lay down her sword and admit that she traded on inside information,” said Seth Taube, a former Securities and Exchange Commission lawyer Broker’s assistant pleads guilty, will testify against Martha Stewart Douglas Faneuil, an assistant to Martha Stewart's stockbrokei pleaded guilty Wednesday as part of a deal to testify against Stewart and others who might be charged in connection with safe of ImClone Systems Inc. shares last December. Dec. 27, 2001: Stewart Percent sells change almost 40% 4,000 shares of ImClone. June 6, 2002: The House Energy and Commerce Committee, which is investigating ImClone trading, says it is probing Stewart s stock sale. June 21: Merrill Lynch J Co. announces that it has suspended Stewart's broker, Peter Bacanovic and his assistant. Douga; Faneuil. 20% 0% Martha Stewart Omnimedia Sept. 10: The House committee asks the Justice Departmer* begin a criminal investigation into whether Stewart knowingly lied to lawmakers. -20% -40% -60 Dec. 28: The Food and Drug Administration announ-ces it has re- jected -80% ,r nClones application for Erbitux. a promising cancer drug. June 12: Samuel Waksal is arrested, dumping his ImClone shares and advising family members also to sell. Oct.: Fanej pleads gi- and agrees testify aga-s Stew. Aug. 12: Waksal pleads innocent to a criminal indictment -100% that includes new charges of obstruction of justice and bank fraud and previous insider trading and penury counts. Dec. Jan. Feb. March April May June July Aug. Septfc SOURCES: Yahoo.com; Commodity Systems Inc.; Associated Press now in private practice. “The idea is, you flip Faneuil, then you flip Bacanovic. and then you get Stewart,” Taube said. “She is clearly the top of the bv pyramid in this little triangle Mark Herr, a Merrill Ly spokesman, said the firm cooperated fully with invert gators. SATION rHE BATTA Fire At 9:05 Robert A responded Tourist ge capturing DAYTONA BEA tourist who capl tor at a putt-put himself nabbed lot, clutching t holding its mout Derrick Dale North Caroline with animal po. theft after using a three-foot alii] Brand you b City College