Martha Stewart's Trial Set for January
story.news.yahoo.com
By Gail Appleson
NEW YORK (Reuters) - Martha Stewart (news - web sites)'s trial for securities fraud will start on Jan. 12, a federal judge ruled on Thursday after lawyers for the lifestyle trend-setter sought more time to prepare for her defense.
U.S. District Judge Miriam Goldman Cedarbaum set the trial date after defense lawyers said they needed a number of months to review the government's evidence against Stewart and her former stockbroker at Merrill Lynch & Co (NYSE:MER - news)., Peter Bacanovic. The trial date is subject to change.
Stewart is accused of lying to investigators to conceal suspiciously timed trades of ImClone Systems (Nasdaq:IMCLE - news) shares.
If convicted, Stewart, 61, could face up to 30 years in prison and $2 million in fines. Her next hearing is slated for Nov. 18 at which time lawyers will argue key motions.
Stewart returned to Manhattan federal court Thursday for the first time since June 4, when she was indicted and pleaded not guilty of securities fraud, conspiracy, obstruction of justice and making false statements. Bacanovic also pleaded not guilty.
She seemed in good spirits before the hearing, waving and chatting with courtroom sketch artists. But Stewart, wearing pearls and a brown plaid blazer, began checking her watch and tapping a pen on the counsel table when the hearing was delayed by the late arrival of Bacanovic and his lawyers.
After the hearing, she remained composed as she strolled through a throng of photographers and shouts from supporters of "We love you Martha."
Stewart has resigned as chief executive of Martha Stewart Living Omnimedia Inc. (NYSE:MSO - news), the media and lifestyle company she founded, as the scandal made headlines around the nation.
She came under scrutiny during an investigation of her friend Samuel Waksal, founder of ImClone. Prosecutors alleged that Waksal sold shares in his biotech company in December 2001 based on confidential information.
They said Waksal planned to dump his shares before news broke that regulators would reject the company's application for its highly-touted cancer-fighting drug Erbitux -- information that would cause the stock price to plummet.
Waksal was sentenced last week to more than seven years in prison -- the first chief executive jailed for playing a part in the recent scandals that have rocked corporate America.
Prosecutors allege Stewart sold ImClone shares based on an inside tip that Waksal was selling his stock. She then lied to investigators to conceal the illegal trades, they allege.
While the U.S. attorney did not charge Stewart with insider trading, the U.S. Securities and Exchange Commission (news - web sites) has filed a related civil suit against her, accusing her of selling stock on information not available to the public.
(Additional reporting by Paul Thomasch) |
