Exclusive: DOJ Has Enough Evidence To Arrest Stewart
Official Says They Have 'Solid Criminal Case'
POSTED: 8:41 p.m. EST February 5, 2003
UPDATED: 9:33 a.m. EST February 6, 2003
NEW YORK -- NewsChannel 4 has learned officials at the Justice Department now believe they have enough evidence to arrest and charge Martha Stewart.
SURVEY
Do you think Martha Stewart did nothing wrong, did something unethical but not illegal, or do you think she did something illegal?
Something illegal
Something unethical
Nothing Wrong
"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.
wnbc.com |
