The ‘Martha Stewart Guy’ Has A Weekend Furlough
8 CommentsBy Ed Silverman // August 20th, 2008 // 8:16 am
Do you recognize the man in the photo? Why, it’s none other than Sam Waksal, who became infamous for tipping off Martha Stewart when shares in ImClone Systems, the drugmaker that he founded, were about to take a dive back in 2001.
A photographer for The New York Post took this shot of Waksal entering his Bronx, New York, halfway house, where he arrived only last week after serving five years in prison. And apparently, he’s getting VIP treatment - he was given a weekend furlough and looks like he went shopping. He’s holding bags from Smythson, a luxury leather shop in midtown Manhattan.
“They blocked off the whole reception area just for him,” a source tells the Post, adding that most inmates wait hours to be processed. “Then the director told everyone else that they can’t talk to reporters about him…He’s got money, so he gets to do what he wants.”
Waksal, 60, is in the home stretch of a reduced seven-year sentence for securities fraud, conspiracy, obstruction and perjury for selling his ImClone stock before the public learned that a long-promised cancer drug wouldn’t be approved by the FDA, the Post reminds us.
Hat tip to Pharma’s Market
Justice in Michigan
It’s a good thing…
keen observer
It is irresponsible and reckless blogging to lie and misrepresent, “Sam Waksal, who became infamous for tipping off Martha Stewart.” Ms. Stewart NEVER received any “tipping” from Waksal. She knew none of Waksal’s insider information when she made her completely legal, insignificant personal stock sale. Waksal became “infamous” for his illegal insider trading in the millions of dollars that had nothing to do with Martha Stewart. The media frenzy over Ms. Stewart and her puny legal stock sale is over and done with — MOVE ON!
Justice in Michigan
She’s a good thing…
Ed Silverman
Dear Keen Observer,
How do you know this?
Regards
ed
atlex
Ed,
Keen Observer is not altogether wrong. I double checked and found that prosecutors argued that Stewart sold her stock after her broker told his assistant to tip her off that Waksal was trying to sell; the broker was also the broker for Waksal. This, in itself may or may not have been illegal on Stewart’s part. However, she and the broker lied about the course of events saying that they had previously arranged a set price for selling the stock. I think she was convicted for obstructing justice.
Atlex
Ed Silverman
Hi Atlex,
All this was hashed over endlessly back then. The prosecutors successfully established how the information flowed among the various individuals. So I understand the point, although there was the association between them all. I’m always happy to correct or tweak wording when necessary, but I asked my question of the keen observer, because I’m curious to know why this person is so steamed.
Beyond that, Waksal remains of interest thanks to this episode and because he founded ImClone, which is again in the news, of course. So it’s not time to ‘move on,’ as the keen observer put it. It’s time to keep watch.
Cheers
ed
atlex
Ed,
I only commented because the case always amused me (it’s not about the crime, it’s the cover-up). While your comment may have been technically incorrect, it is certainly not of great relevance to the core of the story–Waksal. My reading of KO’s comment is that he is not terribly concerned one way or the other about the Waksal story, but was, for some reason, sensitive to the constant link to Stewart.
Atlex
Ed Silverman
Hi Atlex,
Okay, and agreed.
ed