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To: steve susko who wrote (563)	6/21/2002 6:52:24 PM
From: Jim Willie CB	Respond to of 89467

Merrill Puts 2 Employees on Leave Martha Stewart probe deepens, oy veh! Jun 21 6:39pm ET NEW YORK (Reuters) - Merrill Lynch & Co. , the nation's biggest brokerage, said on Friday it placed two employees on leave, one of whom acted as stockbroker to Martha Stewart, who is embroiled in an alleged insider trading scandal. Merrill, already smarting from a $100 million payment in May to settle a lawsuit over accusations its brokers misled investors, said it took the action after an internal probe "raised factual issues regarding a client transaction." In a statement, Merrill said it placed Peter Bacanovic, a financial advisor, and Douglas Faneuil, a client associate, on "administrative leave pending further investigation." Earlier this week, a spokesman for U.S. Congressman Billy Tauzin of Louisiana said Bacanovic's clients include former Chief Executive Samuel Waksal of ImClone Systems Inc. and Stewart, the lifestyle diva and friend of Waksal's who sold ImClone shares in late December before the stock took a fall. Last week, Waksal was arrested and charged with attempting to sell ImClone stock based on non-public information, and on tipping family members to do the same. Investigators are examining whether Stewart also may have been tipped. She has said her trade was lawful, and has denied inside information played a role in her sale of shares. There was no immediate comment from Stewart or her company, Martha Stewart Living Omnimedia Inc. A spokesman for ImClone declined to comment. "There is some information that we discovered that we thought should be turned over the authorities for their evaluation," a Merrill spokesman told Reuters. "It is not to say that these guys necessarily did anything wrong." The spokesman said the Securities and Exchange Commission will make the next move. "It was our initiative," the spokesman said. "We really want to be seen to be taking action." The firm said the information about the transaction came to its attention during the past 48 hours.