This URL should clear things up:
http://www.seclaw.com/docs/marthastewartindictmentseccivil0603
The untold question remains why did Waksal sell his stock a day after learning of the FDAs negative report? What CEO does something this overt? Any idiot would know he'd leave himself open for massive shareholder fury and SEC questioning.
Of course the FDA's turn-around on the drug is the real question nobody's asking.
All adding up to another good reason to stay out of the stock market.