From CBS Marketwatch:
Sam Waksal, the former ImClone Systems executive whose insider trading has put Martha Stewart in prosecutors’ crosshairs, is expected to learn his fate in federal court on Tuesday…
“The number of years Waksal will get would depend on how cooperative he has been,” said Larry Soderquist, a law professor at Vanderbilt University. Soderquist said he believes Waksal will get three years jail time. The former ImClone executive hasn’t appeared to be cooperating with prosecutors.
What does such “non-cooperation” consist of not doing?
Waksal also likely did not provide any information to government attorneys on Martha Stewart, according to Mintz. …
Last week, Stewart was indicted for allegedly receiving insider information for her sale of ImClone shares in December 2001. Stewart, a friend of Sam Waksal’s, pleaded not guilty to allegations of obstruction, false statements and securities fraud. Stewart also resigned as chairman and chief executive of Martha Stewart Living Omnimedia.The public, after the Enron and WorldCom scandals, is not likely to accept hand slaps of white-collar criminals, even though Waksal did not engage in an Enron type of situation, said Soderquist. “This is not a good time to be sentenced.” [“Waksal’s fate to be decided Tuesday“, June 9, 2003, CBSMW]
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