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To: SirRealist who wrote (58668)6/23/2002 5:41:29 PM
From: puborectalis  Respond to of 208838
 
Reuters Business Report
Report: Stewart Friend Sold ImClone Stock

NEW YORK (Reuters) - A close friend of Martha Stewart's sold shares of biotech firm ImClone Systems Inc. (NasdaqNM:IMCL - News) around the same time as the home decorating diva, sources close to a congressional inquiry told Time magazine.
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The information embroils Stewart further in the scandal involving stock sales of troubled ImClone and the company's former chief executive Samuel Waksal, who was indicted earlier this month on charges of insider trading.

Dr. Bart Pasternak, a Westport, Connecticut vascular surgeon, sold 10,000 shares of ImClone on either Dec. 27 or 28 of 2001, according to Time. Stewart sold nearly 4,000 shares on Dec. 27, a day before the U.S. Food and Drug Administration turned away an application for the company's experimental cancer drug.

On the day Stewart, who denies that inside information played any role in the sale, sold the shares, she was traveling with Pasternak's estranged wife Mariana, the magazine said, and investigators want to know if Mariana Pasternak was in touch that day with her husband, who is also a friend of Waksal's.

Calls to Dr. Pasternak were not returned. Mariana Pasternak was unavailable for comment.

Stewart's stockbroker, Peter Bacanovic of Merrill Lynch & Co. (NYSE:MER - News), was placed on leave last week after an internal probe raised questions about Stewart's share sale.