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Non-Tech : The Enron Scandal - Unmoderated -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (2447)	8/7/2002 5:24:47 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 3602

Ex-ImClone CEO Waksal Indicted for Fraud Wednesday August 7, 5:02 pm Eastern Time Reuters Business Report Ex-ImClone CEO Waksal Indicted for Fraud biz.yahoo.com NEW YORK (Reuters) - Former ImClone Systems chief executive Samuel Waksal was indicted on Wednesday for securities fraud in an alleged insider trading scam that has made Waksal a symbol for stock shenanigans in corporate America. He also was charged for bank fraud and obstruction of justice. Waksal, 54, of New York, had been trying to reach a plea deal with federal prosecutors for weeks in an effort to avoid the grand jury indictment. He had been arrested in June on a complaint filed by federal prosecutors. Authorities allege he tried to sell his stock and tipped off family members before a public announcement that the Food and Drug Administration had rejected ImClone's application for a new cancer drug called Erbitux. News of the FDA's rejection wrecked havoc on the company's stock. Waksal has been accused of receiving a tip on Dec. 26 from his brother Harlan, then the company's chief operating officer and now its chief executive, about the FDA rejection. Waksal then allegedly tried to sell 79,797 shares and alerted his father, Jack, and daughter, Aliza. Also under federal investigation is homemaking guru Martha Stewart, a friend of Waksal, who sold nearly 4,000 shares of ImClone the day before the FDA news was made public. She has repeatedly said her sale was lawful and based on public information. Although no criminal charges have been filed against her, she has been sued privately by shareholders in her company, Martha Stewart Living Omnimedia .

To: Glenn Petersen who wrote (2447)	8/9/2002 6:18:23 PM
From: Glenn Petersen	Respond to of 3602

Ex-Tyco CEO May Face Additional Charges By Jeanne King Friday August 9, 3:32 pm Eastern Time Reuters Business Report biz.yahoo.com NEW YORK (Reuters) - New York prosecutors could file additional charges against former Tyco International Ltd. (NYSE:TYC - News) Chief Executive L. Dennis Kozlowski, including grand larceny, sources close to an investigation said on Friday. Other people connected with Tyco could be charged with falsifying business records to assist Kozlowski, the sources said. The sources declined to be more specific and couldn't say when any charges would be filed. A call to Kozlowski's attorney was not immediately returned. Earlier this week, The Wall Street Journal reported that Kozlowski used $135 million of Tyco money to pay for a lavish lifestyle that included the purchase of yachts, mansions and artwork. The money was borrowed from a special Tyco fund and in some cases was forgiven or never repaid, the article said. "The big question is did he have permission to take the money," one of the sources said. "If not, it's stealing." If he were to be charged with grand larceny and convicted, he could face up to 25 years in prison in addition to any prison time he'd have to serve were he to be convicted of previous charges involving dodging state sales taxes. Kozlowski served as CEO of Tyco from 1992 until this year, raking in several hundred million dollars in salary as he built it from a little-known company into a sprawling international conglomerate whose products include garbage bags, health care equipment, and ADT burglar alarms. He resigned in June, a day before New York prosecutors indicted him for scheming to avoid $1 million of sales tax on artwork by such masters as Monet and Renoir.