This just in...
Former ImClone CEO Waksal Gets 87 Months in Prison
Tue June 10, 2003 12:58 PM ET
At a hearing in a Manhattan courtroom, U.S. District Judge William Pauley also ordered Waksal to pay restitution of $1.26 million.
Waksal pleaded guilty last October to six felony counts related to insider trading, and in March, he pleaded guilty to charges he evaded taxes on $15 million worth of art he purchased. He had been named in a 13-count indictment in August 2002, accusing him of bank and securities fraud and obstruction of justice.
Prosecutors alleged Waksal tried to sell his ImClone shares ahead of a public announcement that the U.S. Food and Drug Administration would reject the company's highly touted new cancer drug, called Erbitux.
Decorating expert Martha Stewart, a friend of Waksal's and CEO of Martha Stewart Living Omnimedia Inc., was dragged into the investigation in June 2002 when news surfaced that she had sold nearly 4,000 ImClone shares in December 2001, just before the bad news about Erbitux came out.
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7 years and 3 months in prison, makes me wonder how hard they will be on Martha.
Mrs. Shakita