Posted on 07/25/2004 12:20:40 PM PDT by CHACHI
Martha Stewart Witness Gets $2,000 Fine
By TOM HAYS, Associated Press Writer
Sun Jul 25, 7:20 AM ET
http://story.news.yahoo.com/news?tmpl=story&cid=530&e=8&u=/ap/20040725/ap_on_bi_ge/martha_stewart_faneuil
NEW YORK - A former brokerage assistant who helped Martha Stewart (news - web sites) make her fateful stock trade and later emerged as a key government witness was spared prison and probation Friday and fined just $2,000 for accepting a payoff during the government's investigation.
U.S. District Judge Miriam Goldman Cedarbaum imposed the fine against Douglas Faneuil one week after she sentenced the convicted homemaking entrepreneur to five months in prison and five months home detention for lying to authorities.
Faneuil, who had pleaded guilty to a misdemeanor charge of accepting a payoff, faced up to six months in prison under sentencing guidelines. But prosecutors recommended no jail time after his testimony helped them secure a conviction of Stewart in federal court in Manhattan.
At sentencing, the 28-year-old defendant apologized for initially lying to protect his boss and Stewart.
"I should have offered the candor and honesty that are owed the U.S. government, and to all decent people, by refusing to cover up a misdeed," he said.
His voice quavering, Faneuil said he had feared his testimony would never prevail "against rich and powerful people. I was wrong, and for that I am immensely grateful."
Prosecutors, in a letter to the judge, had called Faneuil's testimony "clear and powerful," and praised him for coming forward even though "he had no reason whatsoever to believe his lies would ever be uncovered."
Faneuil was an assistant to Stewart's stockbroker and co-defendant, Peter Bacanovic, who was convicted along with Stewart and received virtually the same sentence.
Prosecutors had alleged that in 2001, Bacanovic ordered Faneuil to tip Stewart that her longtime friend, Sam Waksal, was dumping shares of his biotechnology company, ImClone Systems Inc. Waksal had advance knowledge of a government report on an experimental drug that later sent shares of ImClone into a free fall.
Stewart and Bacanovic maintained that she sold because of a preset plan to unload the stock when it fell to $60 a claim Faneuil backed before pleading guilty.
At trial, Faneuil told jurors that Bacanovic, after learning Waksal was trying to sell, told him: "Oh my God. Get Martha on the phone."
On orders from his boss, Faneuil said he told Stewart about Waksal, then on orders from Stewart herself sold her stable of 3,928 shares, netting about $228,000.
Faneuil said the broker offered him a week's vacation and a trip to Argentina in early 2002 in exchange for supporting the story about the $60 stock order.
The defense tried to discredit Faneuil as an admitted drug user and a liar. Lawyers used e-mails to show jurors he had a spiteful fixation on Stewart while he worked at Merrill Lynch & Co.
Faneuil told a friend in an e-mail: "Martha yelled at me again today, but I snapped in her face and she actually backed down! Baby put Ms. Martha in her place!!!"
Both Stewart and Bacanovic are free pending appeal.
And for that, you are labeled a felon and go to jail?
This weasel just was slapped on the hand with a $2,000. fine for lying to authorities. This liar was instrumental in convicting Ms Stewart.
Something is very wrong in this society filled with envy and greed. Something is very wrong with our justice system when an investigation and a trial can be manipulated to someone's advantage.
Justice is not blind anymore. It is for sale and political advantage.
This is an outrage, a witch-hunt. Going after an entrepreneur that has contributed to the community and to the national economy, just because this entrepreneur is aggressive, resourceful, creative and speaks frankly.
Arent these the qualities that we look for in most successful CEO's?
Oh... but this entrepreneur is a woman... That changes everything
She should be humble, cry a lot, depend on a man for good ideas, and apologize for bad behavior. At least, that is what some reporters say she should have done to avoid being convicted. Imagine that, a little woman can get sympathy from our courts, but not someone with guts!
Sorry, we just don't buy this idea of a woman's role in the closed minds of many in powerful positions today.
In my fight against communism, I, a married woman and a mother, had to work every day with a rifle pointing at me until I came to United States.
Conviction should be reversed!
Chachi Novellas-Bengochea
Delray Beach, Florida U.S.A.
FOR FREEDOM & JUSTICE GROUP
http://groups.yahoo.com/group/ForFreedomandJustice
"IN GOD WE TRUST"
Wow. (sarcasm) $2000 and no jailtime?
Good. He cooperated to expose the crimes of the rich and famous and he should be rewarded for that. Bill and Hillary Clinton should have been prosecuted, convicted and sentenced to prison while Linda Tripp should have been completely exonerated. But enough of Bill and Hillary's friends did not testify against them.
What country had the time and money to point a rifle at "you" every day ?
Duhh, Gee, I's Sorry. I's just sloppy, yup, jus sloppy.
Okay, take a deep breath. From the beginning
Martha sold stock that she knew was over-valued. How did she know this? She was the recipient of inside information, which the buyer of the stock did not have, which caused the buyer to pay more than the stock is worth.
That's cheating.
You may be of the opinion, "buyer beware", and you may disagree with insider trading laws, but the laws are there. If you can't abide by the laws, don't trade stock. See, wasn't that easy?
Now, when Stewart gets caught and questioned by the Feds, she could have told the truth, and probably paid a civil penalty. But no, she doesn't just lie, she fabricates some fairy tale about an earlier agreed sale price.
AND here's the important part. Why does she lie? Because she knew what she did was wrong!!!(i.e. consciousness of guilt)
When the Feds come to your door (which is indication that the matter is serious)you have three options:
1. Tell the truth
2. Say "Go away, talk to my lawyer"
3. Lie
Option three is the only one that gets you in additional trouble.
You ask, "So where is the crime? Lying? Convicted for the crime of lying! Now, that is a first in our very blemished justice system."
If you look at the United States Code, there are various prohibtions against lying, such lying to a federal agent, lying to a grand jury, lying in court. etc.
You also state, " This is an outrage, a witch-hunt. Going after an entrepreneur that has contributed to the community and to the national economy, just because this entrepreneur is aggressive, resourceful, creative and speaks frankly. Arent these the qualities that we look for in most successful CEO's?"
Well, I'm sorry, but if a CEO has all those qualities, but is dishonest, I don't want him as a CEO.
Anyway: It seemed pretty clear to me from before she was even indicted; from the first story that I heard on the subject, that she had enemies that had already determined that she would do time.
I think a lot of reporters must know more about the "behind the scenes" people that made sure Martha did time than they're willing to say (at least I haven't read - or seen - anything on it).
Anyway: It seemed pretty clear to me from before she was even indicted; from the first story that I heard on the subject, that she had enemies that had already determined that she would do time.
I think a lot of reporters must know more about the "behind the scenes" people that made sure Martha did time than they're willing to say (at least I haven't read - or seen - anything on it).
If you hit the post key and nothing happens - don't just hit it again.
#5..Well said!
Lying takes MANY different forms.
Ms. Stewart lied.
If I lied like Ms. Stewart, I would have a bigger jail term.
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