Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (51093)	3/5/2004 2:40:25 PM
From: AugustWest	Respond to of 57110

Verdict Is Reached in Martha Stewart Case ( AP Online ) NEW YORK, Mar 05, 2004 (AP Online via COMTEX) -- A verdict has been reached in the Martha Stewart trial, a law enforcement source told The Associated Press Friday. Extra security was seen outside the Manhattan federal courthouse where the trial is being held. Earlier Friday, a federal judge said jurors have sufficient evidence to decide whether to convict Martha Stewart's former stockbroker of perjury. The judge's opinion, issued as the third day of deliberations began at the pair's stock fraud trial, does not mean jurors are certain to convict the broker, Peter Bacanovic. They still must find other legal conclusions, including that Bacanovic intentionally gave false testimony. U.S. District Judge Miriam Goldman Cedarbaum, in response to a question from the jury, said the testimony of Stewart's assistant, Ann Armstrong, and a telephone message log she kept are enough to meet the high standards of evidence to convict a defendant of perjury. The judge's opinion was sent to the jury in a note at 10:15 a.m. Bacanovic is accused of lying under oath about a message he left for the homemaking mogul on Dec. 27, 2001, the day she sold ImClone Systems stock. Bacanovic told the Securities and Exchange Commission in 2002 that the message simply relayed ImClone's stock price. But Stewart's assistant recorded the message as: "Peter Bacanovic thinks ImClone is going to start trading downward." In the SEC interview, Bacanovic recalled the message this way: "I would like to speak with her, if possible, today and regarding ImClone and the current price of the stock is." To convict a defendant of perjury, jurors must rely on the testimony of two witness or on the testimony of one witness whose story is supported by a document. Cedarbaum concluded that Armstrong's testimony and her telephone message log can be counted as two items. "The witness had an independent recollection, apart from the log," the judge said. Bacanovic lawyer Richard Strassberg strongly objected to the judge's opinion, saying she was essentially allowing jurors to reach a perjury conviction based on one witness' testimony. Notes from jurors to the judge overseeing the stock case have focused almost exclusively on Bacanovic, asking to review his e-mails, phone records and a tape of one of his interviews with investigators. On Thursday, the jury asked in highly specific language about the special standard of evidence that would be required to convict Bacanovic of perjury. It asked whether it was enough to use Armstrong's testimony plus the message log she created. "I think the short answer is yes," the judge mused to lawyers on Thursday. However, she gave the government and Bacanovic's defense team time to submit papers arguing the matter. Stewart and Bacanovic say they had agreed earlier to sell the stock when its price fell below $60 per share. The government says that was a cover story and Stewart actually sold because Bacanovic ordered his assistant, Douglas Faneuil, to tell her that ImClone CEO Sam Waksal was trying to sell his shares. Stewart's lawyer now concedes she received the Waksal tip but maintains Stewart was accurate when she told investigators in April 2002 that she had no memory of it. Stewart, 62, is charged with conspiracy, obstruction of justice and two counts of making false statements. The combined charges against her carry a penalty of up to 20 years in prison. If she is convicted of any criminal count, the SEC could revoke her seat on the board of Martha Stewart Living Omnimedia and possibly force her to step down as chief creative officer of the media company. Bacanovic, 41, is charged with one count of making false statements, making and using false documents, conspiracy, perjury and obstruction of justice - charges that carry a prison term of up to 25 years. Under federal guidelines, the sentence for either defendant could be sharply reduced, even to less than a year, if convicted. By ERIN McCLAM Associated Press Writer Copyright 2004 Associated Press, All rights reserved -0- APO Priority=u APO Category=1310 (PROFILE (COUNTRY:United States; ISOCOUNTRY3:USA; UNTOP:021; APGROUP:NorthAmerica;) ) KEYWORD: NEW YORK SUBJECT CODE: 1310 * end of story *