Insider Trading: Did Waksal tip off members of his family and Martha Stewart about FDA rejection of new drug Erbitux?
ImClone Founder Sam Waksal pled guilty to six counts of fraud, perjury, conspiracy. Sentenced to 7 years in prison and fined $4.3 million.
Faneuil pled guilty to accepting gifts for silence.
Martha Stewart served 5 months in prison, 5 months of house arrest, for lying to investigators. Had to resign from NYSE board.
Baconovic also got 5 months in prison.
Dr. Samuel Waksal
Broker’s Assistant Douglas Faneuil
Broker Peter Baconovic