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Wednesdayjanuary 21, 2004
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THE BATTALI0^
With a wave to her fans,
Martha Stewart heads to trial
STEWART
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By Erin McClain
THE ASSOCIATED PRESS
NEW YORK — Martha
Stewart waved to her sup
porters, strode into a
Manhattan courthouse and
repeated a plea of innocent at
the formal start of her stock-
trading trial Tuesday.
The 62-year-old million
aire gracious-living guru
stood in court and nodded at
the first batch of jurors, who were interviewed
one by one in a judge’s private robing room.
“Not guilty,” Stewart said five times, speak
ing almost inaudibly and nodding as she re
entered her plea to five criminal counts related
to her 2001 sale of nearly 4,000 shares of
ImClone Systems.
Stewart, in a dark overcoat, clutched two
bags as she stepped out of a black town car and
said “Good morning” while passing a phalanx
of cameras. She then climbed the courthouse
steps and briefly waved to two fans standing in
the freezing cold, including a man wearing a
“Save Martha” chef’s hat and matching apron.
In court, she produced a ballpoint pen and
green stenographer’s notebook and listened to
U.S. District Judge Miriam Goldman
Cedarbaum instruct the potential jurors on their
role in the trial.
“Only you can determine what happened,
and the verdict as to each count will be your
decision alone,” the judge said.
Cedarbaum told the potential jurors that
opening statements will probably begin next
week. The trial is expected to last into March.
Stewart faces 30 years in prison and penal
ties of $1.25 million, although she would likely
receive far less under federal sentencing guide
lines if convicted.
Stewart is the highest-profile figure to stand
trial since the government began its crackdown
on corporate corruption two years ago.
She became the queen of home decor and
amassed a fortune as the head of Martha
Stewart Living Omnimedia, which stamped her
style on everything from magazines and recipes
to bed linens and bath towels. Her legions of
supporters argue she is being targeted because
of her celebrity status.
“This is a witch hunt,” said Linda Smith.
who took a two-hour bus ride from New Jerse;
to stand outside the courthouse in support of
Stewart. “Martha’s public believes her
believes in her innocence.”
The 1 me lone stock fell sharply the day after
Stewart’s sale on a negative government report
about an ImClone cancer drug. Prosecutors saj
Stewart lied to investigators to cover up ihai
her stock sale was prompted by a tip that
ImClone founder Sam Waksal was trying to
sell his shares after getting advance word of
the report.
Stew art claims she and her stockbroker had
a pre-existing order to sell ImClone stock whet
it fell to $60 per share.
The broker, Peter Bacanovic also is charged
with five criminal counts in the trial.
Bacanovic, 41, also re-entered a plea of
innocent to each count against him, clearly anc
emphatically repeating the phrase “not guilty;
Bacanovic’s five counts carry a total of 25 year
and $1.25 million.
Stewart and Bacanovic entered the sam:
innocent pleas on June 4, the day they wert I
indicted. They had to formally re-enter ther
Tuesday because the government made lajj
minute changes to its indictment.
The jury selection process is routinely hei;
in open court, but Cedarbaum closed it forth*
case, saying she was worried jurors might 1*
less forthcoming w ith their answers if |kL
knew reporters were in the room.
Instead, a transcript of each day's juror qnli
tioning w ill be provided to the press on ihefoj.
lowing day.
Lawyers for 17 media organizations, includ,
ing The Associated Press, asked a federt
appeals court to ovenum the closing of §>,
process. The appeals court scheduled ^9
meats for Monday, meaning any decision proh
ably would affect only future cases, not fcf
Stewart trial itself.
In addition to lying to investigators, Stewar
is charged with securities fraud. The goven.
ment claims she repeatedly misled her invesum
in her ow n company by declaring her mnocea|
in 2002.
The government’s star witness will be Dow
Faneuil, 28. a former Merrill Lynch brokcrag
assistant who is expected to back the govern
ment's version of events and say he was plied
with gifts in exchange for initially suppomn|
Stewart and Bacanovic's version. J|
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