Exclusive: DOJ Has Enough Evidence To Arrest Stewart

WNBC ^ | Feb. 6, 2003 | Unknown

[conservativecorner]

NEW YORK -- NewsChannel 4 has learned officials at the Justice Department now believe they have enough evidence to arrest and charge Martha Stewart.

"We have a solid criminal case against Martha Stewart," one Justice Department official tells NewsChannel 4.

We're told that case includes evidence of insider trading and obstruction of justice. James Comey is the federal prosecutor in charge of the overall ImClone investigation.

"In terms of what we're looking at or who we're looking at ... I just can't comment," he said.

But sources tell NewsChannel 4 that a final decision is still two months away. We're told that Comey will make up his mind by Easter whether or not to file charges against Stewart.

Federal sources say that right now, they are zeroing in on Stewart's broker, Peter Bocanovic. They say their strategy is to first decide whether to charge Bocanovic with insider trading -- and if so, they will then see if he will cut a deal and cooperate against Stewart.

Stewart's high-powered legal team was set once again to visit prosecutors Tuesday, and again urge them not to file criminal charges. But NewsChannel 4 was told at the last minute that meeting was postponed. Stewart continues to deny any wrongdoing.

She's on the hot seat after dumping 4,000 shares of her ImClone stock, just one day before the price dropped dramatically. The Food and Drug Administration had rejected ImClone's cancer drug, and company CEO Sam Waksal was trying to dump his shares.

Waksal has already pleaded guilty, and he and Stewart both used Bokanovic as their broker.

Bokanovic's assistant, Douglas Faneuil, has pleaded guilty to a misdemeanor in connection with the ImClone scandal. He was back meeting with federal prosecutors just two weeks ago.

Faneuil could be a key witness because his job may have put him in a position to know whether inside information prompted the sale.

NewsChannel 4 commissioned a poll about Stewart's legal woes. Fifty-seven percent of respondents believe she committed a crime. Just 37 percent think her problems are ethical, not criminal, and 7 percent think she did nothing wrong.

Here are the results of two surveys commissioned by NewsChannel 4:

QUESTION 1: Do you think Martha Stewart did nothing wrong, did something unethical but not illegal, or do you think she did something illegal?

Tri-state residents: Something illegal 57% Something unethical 36% Nothing Wrong 7%

Among Women: Something illegal 49% Something unethical 43% Nothing Wrong 8%

Among Men: Something illegal 66% Something unethical 28% Nothing Wrong 6%

QUESTION 2: Stewart is under investigation for possible insider trading of ImClone stock. Because of who she is, do you think she is being singled out and made an example, being treated like anyone else, or is she getting better treatment?

Tri-state residents: Being singled out 37% Treated like anyone 36% Being treated better 27%

Among Women: Being singled out 43% Treated like anyone 33% Being treated better 24%

Among Men: Being singled out 32% Treated like anyone 39% Being treated better 29%

NOTE: This survey was conducted from January 27th, 2003. 412 residents of the tri-state area were interviewed in proportion to the population in each county. All interviews were conducted by telephone. The results are statistically significant at plus or minus 5% for the entire sample.

[conservativecorner]

Martha can make cookies in the prison kitchen.

[apillar]

Anybody wanna take bets that Martha takes an extended vacation to the Cayman Islands....

[Sacajaweau]

Somehow I think "stripes" are going to be "IN" next year. I avoid buying her stuff now. I think she has the most boring collection of home goods ever. Martha is boring, boring, boring and made her money on the backs of "bored" housewives.

[Sacajaweau]

P.S. Martha's glossy, mint green, "collector" Christmas ornaments are on sale at our Kmart at 90% off. They're STILL sitting there!!!!

[Sacajaweau]

The lady is/was a stock broker. She knows EXACTLY how the system works. When all the big people sell off the day before a negative report and reap the profits of all the projected success of an item, something is going on.

[BluH2o]

Although the Feds like to take down a high profile individual like Martha Stewart (it helps create the impression they actually do something/it has a deterent effect on others who might be playing it a little loose) they want an iron clad case. If they have one there's no doubt they will prosecute ...

[Eric in the Ozarks]

Martha in an ORANGE JUMPSUIT bump.

[cactusSharp]

I cannot stand this smarty elite but her KMart crap is really quality stuff......shame Stewart is not quality

[isthisnickcool]

The lady is/was a stock broker. She knows EXACTLY how the system works.

That's true and something you don't see mentioned very much in the news articles. She could have made even more money by dumping the shares then turning around and then shorting the stock. But she is too smart to do that.

[GunsareOK]

The rules are for little people, not for Clinton apologists like her, so she thinks.

[SarahW]

But the blue ones were lovely. They were snapped right up.
The green ones happened to be ugly.

[Just mythoughts]

So the heat is on Hilllllareeeeeee HELP!

[cricket]

Think the bigger issue is 'how guilty' is Martha.

Personally think there were bigger fish to fry here; and while no particular fan of this Hillary Liberal; save her contributions to 'love of home' can think of no better way to carry a message of corporate greed/corruption into the heart of the home of 'middle America'. . .

. . .and allow, as well, more of those who should have been on the front burner; simmer on the back of the stove instead. . .

[Revelation 911]

until the legal system can bring itself to charge hildebeast with the same for her cattle futures deal, they have no credibility and I would just assume see this tired TV long islander be left alone (as much as she annoys me) hoping ultimately for the day ole crusty is wearing jumpsuit orange and ankle shackles - Only then should we worry about the ribbon twisters and garland makers.

[Eowyn-of-Rohan]

It must be silk....silk is a good thing, and in an autumn tone, like her delicious fennel-braised carrots

[Eowyn-of-Rohan]

But will they order French chocolate for her...or pure Vermont butter? Oh the horror of it all...........

[smiley]

Enough, Martha, Enough....time to come clean....

[AD from SpringBay]

After Martha reads this and craps her pants she'll need to do a special on stain removers.

[chiefqc]

"Hey Martha, that sure was a great idea you had. You managed to save yourself $250,000.00 and lose millions and also may end up in jail".

Haaaaaaaaaaaaaaaaaaa!!!

[quark]

"Insider Trading. It's a good thing."
-- M.S.