Posted on 06/23/2002 2:48:38 AM PDT by Liz
In her TV appearances this week, Martha Stewart plans to chat about how to whip up red, white and blue cupcakes for the kids and prepare a "striking" arrangement of rhododendrons.
The home decorating czarina has even vowed to go live on "The Early Show" on CBS Tuesday — a promise that in normal times would hardly be considered news.
Domestic diva Stewart takes stock of the latest scandal. But this will be no normal week for Stewart.
With a growing insider trading scandal threatening to intrude on her carefully manicured world, this may very well be the week from hell for Stewart.
There are now three probes of the ImClone Systems stock scandal — by Congress, securities regulators and the Justice Department.
Her company's stock has fallen 16% since the scandal broke, and after-hours trading indicated it could fall again tomorrow.
Even her bosses at CBS promised to question Stewart when she appears on "The Early Show" — her first live TV appearance since the scandal erupted.
She has said she did nothing wrong, but two of her chief alibis — ImClone founder Sam Waksal and her broker, Peter Bacanovic — are now in trouble. Waksal has been charged with insider trading; Bacanovic was suspended Friday by Merrill Lynch.
The tide turned late Friday when Merrill Lynch suspended Bacanovic and turned over what could be smoking gun evidence about Stewart's ImClone trades the day before the stock collapsed.
A source familiar with the probe said Merrill Lynch's investigators found evidence that contradicts Stewart's explanation about the ImClone sale.
In two public statements, she said that weeks before ImClone collapsed, she had instructed her broker to sell if the stock fell below $60 per share. It fell to $58 the day she sold.
But sources familiar with the probe said Merrill Lynch lawyers discovered evidence that Stewart's so-called "stop-loss order" — if it even exists — was not the reason Stewart dumped her 3,900 ImClone shares.
A day after Stewart sold, ImClone executives announced after the market closed that U.S. regulators had rejected a new ImClone anti-cancer drug. The stock collapsed in the next business day's trading.
With the new Merrill Lynch evidence, Bacanovic — and thus Stewart — could be in deep trouble, sources familiar with the investigation said.
"This puts enormous pressure on him to cooperate," said one source familiar with the probe. "And that's bad news for her."
Bacanovic has not talked to the FBI, but he has given a lengthy deposition to the Securities and Exchange Commission about his role in trading ImClone stock for Stewart Waksal and his daughters, Aliza and Alana, another source familiar with the investigation said.
Bacanovic answered dozens of questions posed by SEC lawyers about numerous ImClone trades made just before the stock plunged, the source said.
If the Merrill evidence contradicts his statements made under oath, Bacanovic could face criminal perjury charges similar to the ones filed against Waksal.
He also may be asked to testify this week before the House Energy and Commerce Committee.
Meanwhile, Bacanovic's aide, Douglas Faneuil, who also was suspended, is cooperating with the SEC and the U.S. attorney's office in its ongoing probe, said Faneuil's lawyer, Marc Powers.
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Next thing ya know, Martha'll be saying, " It all depends on what the meaning of 'sell' is."
So what was she thinking to even care about losing a measely $250K rather than take the risk of insider trading?
The greed is very Clintonistic, if you ask me.
She's worth big bucks on paper. In real life, Martha is a notorious penny-pincher. She wouldn't even shell out for employee Christmas parties last year.....memoed her help instructing them to have their own parties. Talk about cheap. When that didn't work, she tried to get free food from the restauranteurs she features on her TV show. Martha would have disowned her own mother for $250K.
Remember Grampa Dave's remark a few months ago, where I predicted that some rats caught in these messes would start rolling over on other rats to save their clymers. Well, I think that it is starting here:
Bacanovic has not talked to the FBI, but he has given a lengthy deposition to the Securities and Exchange Commission about his role in trading ImClone stock for Stewart Waksal and his daughters, Aliza and Alana, another source familiar with the investigation said.
Bacanovic answered dozens of questions posed by SEC lawyers about numerous ImClone trades made just before the stock plunged, the source said.
If the Merrill evidence contradicts his statements made under oath, Bacanovic could face criminal perjury charges similar to the ones filed against Waksal.
We know that from rat models, when they are threatened with survival, they will turn on each other and devour each other or at least eat the legs off of other rats. The great Rat feast on each other may be starting. Let the chewing/gnawing begin!
The NY Slimes, DC Compost and CNNCBSNBCCNBCABCPBS can't spike this news. It is too big and too many Wall Street news outlets don't play the old Rat conceal and hide the truth game. Jake Reno is no longer there with her favorite push over Louisa Freeh to block investigations.
This summer could be a lot of fun as we watch the elite socialist rats devour each other as they become poor and lose their power. It will be a joyous sight to watch and listen to.
I read your post about the penny-pinching Hitler. Sheesh.
Anyway, we have changed Monday's show to include, How to make curtains for your prison cell.
Think you're right gramps. We on FR are entitled to a front-row seat
to view the spectacle. Watch this space for play-by-play descriptions.
.....of course, striped fabrics are de rigeur........maybe some ticking yardage?.......
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