Posted on 09/29/2002 7:31:40 AM PDT by Tumbleweed_Connection
...FANEUIL, 26, HAS improbably emerged as a key figure in the Justice Department investigation of Martha Stewart’s sale of stock in the biotech company ImClone last December. Law-enforcement officials have confirmed to NEWSWEEK that Faneuil has agreed to plead guilty to a minor charge and to cooperate in the case that has shocked all Americans with the realization of how much they enjoy seeing Martha Stewart in trouble. People get the informers they deserve; Leona Helmsley was sent up the river by a maid who recalled her sneering that “only the little people pay taxes.” If Faneuil’s testimony seals Stewart’s fate, at least she’ll have been done in by someone with taste.
Faneuil has been of intense interest to prosecutors since June, when he told Merrill’s lawyers that he no longer supports Stewart’s account of how she came to sell almost 4,000 shares of ImClone just a day before it nose-dived. Faneuil was at the center of events as the assistant to Peter Bacanovic, the Merrill broker whose clients included both Stewart and ImClone founder Sam Waksal. Waksal, whose daughter sold a large stake in ImClone the same day as Stewart, has been indicted on insider trading and other charges. (He pleaded not guilty.) What investigators want to know is whether Stewart was tipped off about ImClone’s problems—the FDA had rejected the company’s submission seeking approval of a new cancer drug—and sold her stock before the news was public. Her explanation was that she’d left standing orders to sell the stock if the price went below $60, as indeed it did that day. Bacanovic reportedly backed her account—as did Faneuil, until his unexplained change of heart this summer. It’s unclear whether Faneuil, who spoke to Stewart that day and executed the trade himself, has information that could implicate Stewart in insider trading. But in contradicting her account of a standing stop-loss order, he could be the key to making a case against her for lying to the government. Lawyers for Stewart, Bacanovic and Faneuil all declined to comment last week, and Justice Department officials were mum on their next moves—but were believed to be turning their attention to Bacanovic next...
(Excerpt) Read more at msnbc.com ...
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Faneuil was an assistant broker at Merryl Lynch. The broker he worked for was out. That morning the brass at IMClone sold big hunks of stock. This assistant called Martha Stewart at 10 Am but did not reach her.
She called back after lunch and was told the brass was selling their stock. She tried to call the presidnet of ImClone but did not reach him. She then called back and sold her stock.
If you owned a very good stock in a reputable company and your broker told you all the brass at GE were selling out... would you sell your stock in GE.
Merryl Lynch broke a cardinal rule. Their employee told one client what another was doing. That is reall no no.
The fault lies with Merryl Lynch. They should have happen to them what happened to Arthur Anderson.
You have to use a broker to sell stock. If the brokers are honest and do not allow it, no one can insde trade.
They should put Merryl Lnych out of business. It would be along time before another assistand broker called a client with insider information.
Going after the Martha Stewarts accomplished nothing in an effort to prevent future crimes. Brokerage firms can cheat and the buyers and sellers go to jail not the brokers.
Won't the free market take care of that problem? Or do we need more government regulation?
How many killers does the free market take care of? How many rapists does the freemarket take care of? How many bank robbers does the free market take care of? How many con artists does the free market take care of? How many bad check passers does the free market take care of?
The Free market does not punish criminals. That is why we have governments. That is one of the few legitimate reasons for government.
If the Government did not hunt down find and punish killers, you would not be an old codger. You would have died a young codger.
You are correct this time. We need government regulations for capitalism to work effectively. In previous posts, you expressed the opposite view. Remember "caveat emptor"?
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