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

To: Glenn Petersen who wrote (2521)	10/15/2002 1:51:19 PM
From: Raymond Duray	Read Replies (3) \| Respond to of 3602

THE DAILY ENRON -- CHENEY STONEWALLS THE PUBLIC -- DAY 523 thedailyenron.com Glenn, Does it look like Gee Dubya's buddies Kenny Boy and Skilling are getting away with it? This Martha Stewart thing is a political shell game. I'm surprised you are falling for the ruse. -Ray

To: Glenn Petersen who wrote (2521)	11/12/2002 12:35:33 PM
From: Glenn Petersen	Respond to of 3602

U.S. May Seek Longer Sentence for ImClone Ex-CEO, People Say By David Voreacos quote.bloomberg.com New York, Nov. 12 (Bloomberg) -- U.S. prosecutors plan to ask a judge to lengthen the proposed prison sentence of ImClone Systems Inc. founder Sam Waksal, who pleaded guilty to insider trading and five other crimes, people familiar with the government's case said. Waksal is scheduled to be sentenced in January by U.S. District Judge William Pauley in New York, where U.S. Attorney James Comey will argue for more than the recommended seven to nine years. Prosecutors will produce evidence Waksal is guilty of seven charges to which he didn't confess, the people said. Comey's strategy provides him a chance to extend Waksal's punishment without risking a lengthy court trial, criminal lawyers said. Prosecutors still could demand a trial on the remaining charges should the judge reject a longer sentence. ``It's a tremendous benefit to the government,'' Robert Cleary, a former U.S. attorney in New Jersey, said of using the sentencing hearing to secure harsher punishment. A decision by Pauley to increase Waksal's sentence beyond nine years would probably spur prosecutors to drop the seven remaining charges, the people familiar with the government's tactics said. The unproved charges relate to an alleged conspiracy Waksal had with his father and a daughter to commit insider trading. Marvin Smilon, a spokesman for Comey, declined to comment on his office's plans for prosecuting Waksal. Already Harsh Pauley might reject a stiffer sentence because the recommended penalty under federal guidelines for the six charges Waksal has admitted is already considered harsh for all 13 of his alleged crimes, lawyers said. ``Seven to nine years seems like an enormously long sentence in a white-collar case unless you're talking a billion-dollar fraud,'' Cleary said. ``At some point, prosecutors are going to have to decide: Is it worthwhile to kick a guy when he's down?'' Mark Pomerantz, Waksal's attorney, didn't return calls seeking comment. Prosecutors don't have enough evidence to prove the remaining charges, Pomerantz told the judge at Waksal's guilty- plea hearing. Waksal, who resigned as chief executive of the biotechnology company in May, pleaded guilty to insider trading, securities fraud, bank fraud, perjury, obstruction of justice and conspiracy to obstruct justice and commit perjury, with no guarantee that prosecutors would drop the other charges. He entered no plea for seven charges related to insider trading. Potential Weapon A potential weapon prosecutors have to help them get the longer sentence is testimony by Waksal's father and daughter, who might be called as witnesses at the sentencing hearing in January, the people familiar with the government's case said. In his Oct. 15 plea, Waksal admitted he knew the U.S. Food and Drug Administration would reject ImClone's application of its cancer-fighting drug, Erbitux, on Dec. 28. He didn't plead guilty to passing that news to his relatives, as his indictment alleges. He did admit that he conspired with his relatives to lie to federal officials about ImClone stock they sold, a lesser crime than insider trading. Waksal's father, Jack, an 80-year-old Holocaust survivor, and daughter Aliza, a 28-year-old actress, sold $10 million of ImClone shares on Dec. 27. They haven't been charged with crimes. Prosecutors did file a lawsuit seeking forfeiture of $9.7 million in profits on the sales, alleging the money was the proceeds of insider trading. Waksal's friend, Martha Stewart, chief executive of Martha Stewart Living Omnimedia Inc., is under criminal investigation for selling $228,000 in ImClone shares on Dec. 27. Her case is not directly related to Waksal's, and prosecutors haven't accused Waksal of giving Stewart inside information.