10A
Thursday, February 5, 2004
NATION
THE BATTALION
Broker assistant delivers
damaging testimony
against Martha Stewart N
By Erin McClam
THE ASSOCIATED PRESS
NEW YORK — In the most
damaging testimony yet against
Martha Stewart, a former Merrill
Lynch assistant said Wednesday
that the homemaking mogul
ordered all her ImClone Systems
stock sold after she learned the
company founder was dumping
his own shares.
Douglas Faneuil, the govern
ment’s star witness, said he
passed the tip from broker Peter
Bacanovic to Stewart when she
called on Dec. 27, 2001, on her
way to a vacation in Mexico.
“Peter thought you might
like to act on the information
that Sam is selling all of his
shares,” Faneuil said he told
Stewart, referring to ImClone
founder Sam Waksal.
Later in the call, Faneuil said
he quoted ImClone’s stock price
for Stewart, and she eventually
declared: “I want to sell.” Faneuil
placed the sell order, netting about
$228,000 for Stewart.
Stewart glanced back and
forth at Faneuil and prosecutor
Karen Patton Seymour while
Faneuil testified, making notes
on a legal pad. Bacanovic took
notes as well, and appeared to
scoff occasionally when Faneuil
described parts of the story that
included him.
As cross-examination
began Tuesday afternoon,
Faneuil acknowledged that
Bacanovic never “explicitly”
directed him to lie about the
transaction afterward.
Faneuil’s testimony is the
centerpiece of the government’s
case against Stewart and
Bacanovic, who are accused of
repeatedly lying to investigators
by insisting they had a pre-exist
ing agreement to sell the stock
How much money are we talking...
The case against Martha Stewart centers around her sale of
ImClone Systems Inc. stock, and whether she deceived investigators.
On Dec. 27,
2001, Stewart
sold 3,928
shares, some at
$58.30 and
some at $58.57
for a total of
$229,523.
SOURCE: Associated Press
ImClone’s shares
opened at $45.39 or
Dec. 31 - after the
FDA’s decision on
Erbitux. Had she
sold her shares then,
she would have
made $178,291.
Foril
Texas
[iiielii
The.
ill t
SJahor
A difference
of $51,232
tin at
'I'm
f pyk
ip ) a ra
ead 0
when it fell to $60.
The Food and Drug
Administration issued a nega
tive report about ImClone’s
experimental cancer drug the
day after the sale, sending the
stock down 18 percent.
Stewart saved about $50,000
by getting out when she did.
Waksal, a former jet-setting
New York socialite, is serving
a seven-year prison sentence
after admitting he instructed
his family to sell ImClone
shares when he got advance
word about the report.
Faneuil, 28, also described a
frantic effort by Bacanovic in
the months after the sale to pres
sure him into supporting two
separate cover stories. He said
the broker offered him a week’s
vacation and a trip to Argentina
in early 2002.
He said Bacanovic first told
him the reason for the sale was to
generate tax losses to offset capi
tal-gains taxes, then claimed he
and Stewart had struck the deal to
sell when the stock hit $60.
In January 2002, as the inves
tigation into Stewart’s stock sale
was growing, Faneuil described
the explanation that an animated
tfore. t
The,
otA
withe
die I
Blair
to ii
milaG
g
'Trao
ffleea;
Bacanovic gave him in a discus
sion in Bacanovic’s office.
Faneuil said Bacanovic toll
him: “Listen, I’ve spoken K
Martha. I met with her, and even
one’s telling the same story. This
was a $60 stop-loss order,
was the reason for her sale. We’re
all on the same page, and it’sihf
truth. It’s a true story.”
Defense lawyers told U.S
District Judge Miriam Goldman
Cedarbaum that they plan to
question Faneuil about his
repeated use of marijuana aoi
the club drug Ecstasy.
Without the jury presentlya
Faneuil said in court that he had il
taken both drugs
employed by Merrill Lynch txn
that he had never used
while at work.
A heated exchange
between Seymour and Stewaiti
attorney, Robert Morvillo.onh
much of the past drug use sho
he admissible before the jury.
Faneuil agreed in 2002
cooperate with the government
in its prosecution of Stewartani
Bacanovic, and a routine cte
in the agreement requiredfe
not to break the law.
ora
ubles.
sists. I
t(
OStt
fork
are on
us.
Get a $10 Visa® Gift Card 1 when you switch
to a checking account that has everything
you need. Without the surprises.
CampusEdgeâ„¢ checking is free through January 1, 2005. And
it will stay free for five years if your parents have an account
with Bank of America or as long as you have a monthly direct
deposit. There’s no minimum balance. And there are tons of
extras. Like a free Stuff Happensâ„¢ card, so if you goof up,
we’ll refund your overdraft fee —just this once.
So get it all, plus $10. Bring this ad into our banking center
near Texas A & M University at 111 University Drive E., or
visit any of our other banking centers today.
i
Bankof America^^Higher Standards
'Offer expires 3/15/04. $10 Visa® Gift Card will arrive within three weeks of account opening. Gift Cards are issued by
Bank of America, N.A. (USA) under a license by Visa U.S.A. Inc. Fees may apply depending on how and when your card is used.
See terms and conditions on gift card carrier. Any applicable taxes are the responsibility of the account holder. Limit one gift
card incentive per new account opened.
Bank of America, N.A. Member FDIC ©2004 Bank of America Corporation CECTA10
FDA: Fake birth control patch
shipped from overseas Web site
By Lauran Neergaard
THE ASSOCIATED PRESS
WASHINGTON —An overseas Internet site is
shipping counterfeit versions of a popular Johnson
& Johnson birth control patch, versions that won’t
provide any protection against pregnancy, federal
health officials warned Wednesday.
Do not use Ortho Evra patches — or any other
drugs — ordered from the Web site www.rxpharma-
cy.ws, the Food and Drug Administration warned.
While the contraceptive patch is the only drug
so far proved a fake from that site, the FDA said
consumers should consider its other products sus
pect, too. Contact a health provider immediately if
you’ve used them, the FDA advised.
That Web site is the only known source of the
counterfeit patches, said the FDA, which is inves
tigating the fraud’s source.
The site appeared to have shut down
Wednesday, but the FDA couldn’t say how lor
had been operating or how many U.S. womei
might have ordered the patches. It has no repom
of pregnancies linked to them.
The fake birth control was shipped from In
and the Web site apparently was operated by ane
ty called American Style Products of New Delhi,
The Web site claimed to be offering Jd
FDA-approved patches, complete with picturesof
the real thing, said FDA Associate Commissioiw
John Taylor.
A customer sparked the FDA’s investigation whet
she complained to J&J that she didn’t get whatsk
ordered, Taylor said. Instead of the official
with its special sealed packaging and company label
she received a plastic bag full of patches within
label or other identifying information.
Testing showed the patches contained no con
traceptive ingredient.
Better Ingredients • Better Pizza
Thursday Special
Mapping|1
pu/delivery
r.’fcliiW-?'T' > *
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
1 LARGE
1-TOPPING
$C 99
pu/only
2 LARGE
1-TOPPING
$12"
• pu/delivery
1 EX-LARGE
2-TOPPING
$ I0. 50
" W * pu/delivery
1 LARGE
2-TOPPING
& 2 liter drink
$1 1 99
I • pu/delivery
PICKYOUR SIDE
LARGE
2TOPPING
AND 1 SIDE
$12 78
1 pu/delivery
FAMILY SPECIAL
1 large specialty
1 LARGE
2 TOPPING
*16."
SUNDAY
ANY
LARGE
specialty
II.’
Hedi
Northgate Post Oak Square Center
601 University Dr. 100 Harvey Rd„ Suite D
979-846-3600 979-764-7272
Rock Prairie
1700 Rock Prairie
979-680-0508
Sunday: 1 1 a.m. - midnight
Monday - Wednesday: 11 a.m. - 1
Thursday: 11 a.m. - 2 a.m.
Friday & Saturday: 11 a.m. - 3 a.
R