Posted on 07/02/2002 12:28:46 PM PDT by NativeNewYorker
mClone Systems Inc. is not the only company in which Martha Stewart is involved with Dr. Samuel D. Waksal. She is also an investor, along with a host of Dr. Waksal's friends, business associates and relatives, in a venture fund formed by Dr. Waksal last year known as Scientia Health Group.
Now, with Dr. Waksal, the former chief executive of ImClone, having been arrested and charged with insider trading in connection with ImClone, Scientia's future is uncertain, although a spokesman for Dr. Waksal said it continued to operate.
The Scientia story casts more light on how Dr. Waksal does business. His reputation and salesmanship managed to raise about $40 million last year for Scientia from some prominent investors — before ImClone's troubles began. These included Softbank, a Japanese venture capital and Internet company, as well as Carl C. Icahn, Leon Black and Nelson Peltz.
Dr. Waksal appears to have also spread small amounts of Scientia stock to numerous celebrities and friends, including Ms. Stewart; Harvey Weinstein, the head of the Miramax movie studio; the movie producer Keith Barish; and the art dealer Larry Gagosian.
Scientia along with Dr. Waksal and some of its other officers, is being sued by a former executive, who contends in the lawsuit that he was fired because Dr. Waksal "felt hampered in his ability to engage in illegal, unethical and fraudulent conduct" with the executive present.
The executive, James W. Neal Jr., said that during his work at Scientia, which lasted from June through November last year, he became aware of "illegal and unethical conduct" by Dr. Waksal in connection with Scientia and other business activities.
In the lawsuit, filed in New York state court in March, Mr. Neal said that Dr. Waksal and Softbank told him that his $350,000 salary and minimum $250,000 annual bonus were too high and that Softbank would not invest in Scientia unless the bonus was eliminated. Mr. Neal said he was then fired.
The lawsuit does not specify what illegal or unethical conduct Dr. Waksal was said to have engaged in, so it is possible that Mr. Neal raised vague allegations just to put pressure on Scientia to settle his suit, in which he is seeking $2 million. Joseph Lee Matalon, a lawyer representing Mr. Neal, said he would not discuss what the allegations were until they appeared in a legal motion.
Robert Plotz, a lawyer representing Scientia and Dr. Waksal, said in a statement, "We expect to defend this very vigorously."
Scientia is a company that invests in and nurtures health care and biotechnology companies. Dr. Waksal told investors that Scientia intended to raise $60 million, according to the lawsuit. But a person with access to the finances said the company actually raised about $40 million.
The biggest investor, putting in $10 million, was Softbank, a Japanese company; afterthe value of its Internet investments fell, it and wanted to branch out into biotechnology. Other leading investors included the Continental Casualty Company, which put in $5 million, and Dr. Waksal himself, who put in more than $7 million. An entity associated with Triarc, the company run by Mr. Peltz, put in $5 million, and an entity controlled by Mr. Icahn, a longtime friend of Dr. Waksal, put in $2.5 million, this person said.
Dr. Bart Pasternak, a Westport, Conn., physician, invested $134,000. Dr. Pasternak sold 10,000 ImClone shares last Dec. 28, hours before the company announced the regulatory setback. Dr. Pasternak's former wife was on a plane to Mexico the day before with Ms. Stewart, who sold her ImClone shares on Dec. 27.
Another class of Scientia shares called ordinary shares were sold at a tenth of a penny per share, and Dr. Waksal appears to have sprinkled these around liberally to friends. At that price, Ms. Stewart would have paid $3.50 for her 3,500 shares and Mr. Weinstein of Miramax $2 for his 2,000 shares. Many of Dr. Waksal's family members and business associates also invested.
According to an investor presentation by Softbank in May 2001, Scientia's scientific advisory board had a long list of scientists. But some people listed say they they were never on the board.
Mark Lebwohl, a professor of dermatology at Mount Sinai Medical School, said Dr. Waksal had asked him if he would serve, and he asked Dr. Waksal to send along the information for him to consider. "The next thing I knew my name was on the document," Dr. Lebwohl recalled, saying he immediately told Dr. Waksal that he could not serve.
Brigitte Huber, a professor at Tufts University Medical School, when asked about Scientia at first replied, "I have no idea what that is." When reminded, she said she had indeed agreed to serve on the advisory board but as far as she knew, no meeting had ever been held.
Contributions from individuals whose name begins with [ Waksal, Samuel ]
23 records found in the 2002 database.
WAKSAL, SAMUEL
10/13/00 $5,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[Contribution]
NEW YORK STATE DEMOCRATIC COMMITTEE
[View Image]
Waksal, Samuel
8/13/01 -$2,000.00
New York, NY 10012
-[contribution refunded to individual]
HILLPAC
[View Image]
Waksal, Samuel
8/8/01 $2,000.00
New York, NY 10012
Imclone Systems/President -[Contribution]
HILLPAC
[View Image]
Waksal, Samuel
6/11/01 $5,000.00
New York, NY 10012
Imclone Systems -[Contribution]
HILLPAC
[View Image]
WAKSAL, SAMUEL
11/1/00 $10,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[Contribution]
DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
[View Image]
WAKSAL, SAMUEL
10/26/00 $1,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[Contribution]
DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
[View Image]
WAKSAL, SAMUEL
3/31/00 $10,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[Contribution]
DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
[View Image]
WAKSAL, SAMUEL
11/16/00 $16,500.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[[Receipt--exempt from limits]]
DNC-NON-FEDERAL INDIVIDUAL
[View Image]
WAKSAL, SAMUEL
12/22/97 $1,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS INCORPORA -[Contribution]
98 FRIENDS OF CHRIS DODD
Senate Image Not Available from FEC
WAKSAL, SAMUEL
4/1/99 $10,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[[Receipt--exempt from limits]]
DNC-NON-FEDERAL INDIVIDUAL
[View Image]
WAKSAL, SAMUEL
7/20/99 $1,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[Contribution]
HILLARY RODHAM CLINTON FOR US SENATE COMMITTEE INC
Senate Image Not Available from FEC
WAKSAL, SAMUEL
10/25/99 $1,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[Contribution]
HILLARY RODHAM CLINTON FOR US SENATE COMMITTEE INC
Senate Image Not Available from FEC
WAKSAL, SAMUEL D
8/17/01 $1,000.00
NEW YORK, NY 10017
IMCLONE SYSTEMS INC -[Contribution]
FRIENDS OF SENATOR CARL LEVIN
Senate Image Not Available from FEC
WAKSAL, SAMUEL D
5/4/00 -$10,000.00
NEW YORK, NY 10014
-[Contribution]
DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
[View Image]
WAKSAL, SAMUEL D
3/1/00 $10,000.00
NEW YORK, NY 10014
IM CLONE SYSTEMS -[Contribution]
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE
[View Image]
WAKSAL, SAMUEL D
11/6/97 $1,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[Contribution]
KERRY COMMITTEE
Senate Image Not Available from FEC
WAKSAL, SAMUEL D
1/25/02 $1,000.00
NEW YORK, NY 10017
IMCLONE SYSTEMS -[Contribution]
FRIENDS OF MAX BAUCUS 2002
Senate Image Not Available from FEC
WAKSAL, SAMUEL D
12/20/01 $1,000.00
NEW YORK, NY 10014
IMCLONE SYSTEMS -[Contribution]
SCHUMER '98
Senate Image Not Available from FEC
Waksal, Samuel D.
3/31/99 $1,000.00
New York, NY 10017
ImClone Systems/Chief Executive -[Contribution]
GORE 2000 INC
[View Image]
Waksal, Samuel D.
5/30/01 $5,000.00
New York, NY 10014
Inclone Systems/CEO -[Contribution]
NEW YORK STATE DEMOCRATIC COMMITTEE
[View Image]
WAKSAL, SAMUEL DR
4/16/97 $1,000.00,
-[earmarked intermediary out]
NATIONAL JEWISH DEMOCRATIC COUNCIL POLITICAL ACTION COMMITTEE
[View Image]
WAKSAL, SAMUEL DR
4/25/97 $1,000.00
NEW YORK, NY 10014
INCLONE SYSTEMS -[Contribution]
A LOT OF PEOPLE SUPPORTING TOM DASCHLE
Senate Image Not Available from FEC
Waksal, Samuel Mr.
5/6/99 $1,000.00
New York, NY 10014
Alan L. Goldberg C.P.A. -[Contribution]
BILL BRADLEY FOR PRESIDENT INC
[View Image]
Mr. Waksal, in 1993, put up the money to produce a feature-length documentary about the 1992 Democratic National Convention called The Last Party.
Excellent!
STEWART, MARTHA
8/7/98 $500.00
WESTPORT, CT 06880
MARTHA STEWART LIVING OMNIMEDI -[Contribution]
EVAN BAYH COMMITTEE
Senate Image Not Available from FEC
STEWART, MARTHA
12/17/01 $1,000.00
WESTPORT, CT 06880
MARTHA STEWART LIVING -[Contribution]
FRIENDS OF SCHUMER
Senate Image Not Available from FEC
STEWART, MARTHA
6/27/01 $75,000.00
WESTPORT, CT 06880
MARTHA STEWART OMNIMEDIA -[[Receipt--exempt from limits]]
DEMOCRATIC UNITY-NON FEDERAL ACCOUNT #2
[View Image]
STEWART, MARTHA
5/2/02 $1,000.00
WESTPORT, CT 06880
MARTHA STEWART LIVING/OMNIMEDIA -[Contribution]
CHELLIE PINGREE FOR US SENATE
Senate Image Not Available from FEC
STEWART, MARTHA
9/8/00 $10,000.00
WESTPORT, CT 06880
M STEWART LIVING -[Contribution]
DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
[View Image]
STEWART, MARTHA
10/30/00 $300.00
WESTPORT, CT 06880
MARTHA STEWART LIVING -[Contribution]
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE
[View Image]
STEWART, MARTHA
6/27/01 $25,000.00
WESTPORT, CT 06880
-[[Receipt--exempt from limits]]
DCCCC NON-FEDERAL ACCOUNT #7
[View Image]
STEWART, MARTHA
5/2/02 $1,000.00
WESTPORT, CT 06880
MARTHA STEWART LIVING/OMNIMEDIA -[Contribution]
CHELLIE PINGREE FOR US SENATE
Senate Image Not Available from FEC
Stewart, Martha
6/27/01 $25,000.00
Westport, CT 06880
Martha Stewart Omnimedia/Owner -[Contribution]
DEMOCRATIC UNITY
[View Image]
Stewart, Martha
3/15/99 $1,000.00
Westport, CT 06880
Martha Stewart Living/Chairman and -[Contribution]
GORE 2000 INC
[View Image]
Stewart, Martha
3/15/99 $1,000.00
Westport, CT 06880
Martha Stewart Living -[Contribution]
GORE/LIEBERMAN GENERAL ELECTION LEGAL AND ACCOUNTING COMPLIANCE FUND
[View Image]
STEWART, MARTHA
7/7/99 $1,000.00
WESTPORT, CT 06880
MARTHA STEWART LIVING OMNIMEDI -[Contribution]
HILLARY RODHAM CLINTON FOR US SENATE COMMITTEE INC
Senate Image Not Available from FEC
STEWART, MARTHA
12/6/01 $5,000.00
NEW YORK, NY 10036
MARTHA STEWART LIVING -[Contribution]
MAGAZINE PUBLISHERS OF AMERICA PAC FKA MAGAZINE PUBLISHES ASSOCIATION PAC
[View Image]
Stewart, Martha Ms.
6/27/01 $8,333.00
Westport, CT 06880
M. Stewart Living/CEO Entertainer W -[Contribution]
DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
[View Image]
Stewart, Martha Ms.
9/15/99 $1,000.00
Westport, CT 06880
Martha Stewart Enterprises -[Contribution]
BILL BRADLEY FOR PRESIDENT INC
[View Image]
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