OCR Text |
Show DAILY HERALD Saturday, March 6, 2004 Stewart V Continued from fll &ewart and Bacanovic. The judge could potentially Sentence the pair to lime in, a halfway house or home confinement, but legal experts have said the term would probably tie reducedto roughly a year in prison under federal ' guidelines. Each charge carries a maximum. 'sentence of five $ears '? and4$250,000'fine. The charges centered on why Stewart dumped about $228,000 worth of ImOone Systems stodf on Dec. 27, 2001; just a day before it was announced that the Food and Drug Administration had rejected ImClorie's application for approval of a cancer drug. The announcement sent ImClorie's stocl sharplyilower. govThe'drug eventually won ' ernment approval. Stewart and Bacanovic claimed they had a standing agreement Jo sell when the price fell below $60. But the government contended that was a phony cover story and that Stewart sold because she was tipped by her broker that ImClone CEO Sam Waksal was frantically trying to dump his own holdings. Waksal later admitted selling his stock based on advance word of the FDA decision. He is serving seven years in '' verdict but I continue to take comfort in knowing that I have done nothing wrong and that I have the enduring support of my family and friends. I will appeal the verdict and continue to fight to clear my name. I believe in the fairness of the judicial system and remain confident that I will ultimately prevajL" Stewart's conviction came on a volatile day of trading in her company, Martha Stewart Living Omnimedia. The stock shot up on word of a verdict, then trading was briefly halted. The stock plummeted after , trading resumed. The stock dropped $3. 17, or 23 percent, to close at $10.86. At one point Friday, it hit a high of $17. The government s star witness was Douglas FaneuiL a former Merrill Lynch & Co. assistant who said he passed the tip about Waksal to Stewart on orders from his boss, Bacanovic. Faneuil said that when he told Bacanovic about a flurry of selling by the Waksal family that morning, Bacanovic blurted: "Oh my God, get Martha on the phone." He also said Bacanovic pressured him to lie about the transaction. Stewart did not testify during the trial, and her lawyers called only one witness during a defense that lasted less than an hour. . . er Iraq Continued from Al members of the Iraqi Governing Council broke the unity that the body showed earlier this week when it overcame deep differences to unanimously agree on a draft of the charter. It also highlighted the power wields over the that political process because of his considerable influence over Iraq's Shiite majority. A statement distributed early today by the Governing Council said the members would reconvene Monday "to finalize" outstanding issues "and sign" the interim charter. However, it was unclear whether the final hurdles could be overcome according to the statement's ' timetable. with top U.S. adminisAlong trator L Paul Bremer, council members negotiated in private in an attempt to resolve the Shiite objections. But seven hours after the ceremony had been set to take place, a coalition spokesman said no deal was reached Friday and gave no date for the signing to take ''.,. er place. The council's squabbles squandered an enormous public relations and security effort for the ceremony, a stinging embarrassment for the U.S.-le- d ocd cupation authority and its Governing Council Earlier, Bremer had appeared on hand-picke- morning television shows in the United States, touting the constitution on CNN's "American Morning" as "an extraordinary document, which is really unprecedented in Iraq's history." U.S. and Iraqi officials had planned an elaborate ceremony for the signing, full of symbols of Iraqi unity, that was left a shambles. A map of the country was emblazoned with the slogan "We all participate in the founnew Iraq." Twenty-fiv- e tain pens, one for each member, were lined up on an antique desk belonging to King Feisal I, Iraq's first monarch. Children wearing traditional costumes representing Iraq's main ethnic groups were brought in for the occasion With the audience waiting for the signing to take place, the children went ahead on stage and sang a repertoire of patriotic songs. At the same time, helicopters swarmed the skies around the convention center, scouting for would-b- e attackers. The attacks never materialized, but the meeting was sabotaged anyway. The Shiite objections focused on two clauses in the document: one that effectively gives the Kurds a veto over a permanent constitution due to be put to a referendum next year and another on the shape of the presidency in a future government, a senior said Hamed official in one of the Shiite par ties that balked at signing. . But by the end of the evening, the Dispute seemed to have become broader. Entifadh Qanbar, a spokesman for the Iraqi National Congress, one of the parties that balked at signing, said members had to deal with the issue of how "an unelected body can bind an elected body in the future." He did not elaborate. Qanbar said the parties would have to consult with their and likely with leadership as well The council would meet again Monday , he said, .adding that he hoped a signing would take place then Mahmoud Othman, an independent Kurd on the council, denounced the Shiites for "putting obstacles in front of the declara- tion" The interim constitution, , which will remain in effect until a permanent charter is drafted next year, is a crucial part of the U.S. plan for handing over power to the Iraqis on June 30. The Bush administration is eager to carry out the transfer well before the U.S. presidential elections in November. The planned Friday signing was already six days past the date it was supposed to occur under the U.S. timetable. The Governing Council was unable to overcome sharp divisions by the Feb. 28 deadline, and finally agreed on a draft Monday only after Bremer pushed them into marathon negotiations. m BUTIRE 3TGClPFM G lUudTEdL7SFAOZIirJ CLEARANCE 75-8- 0 KISSES prison for insider trading. Stewart, who averted more than $51,000 in losses by sell-ing when she did, was not charged with insider trading; instead, she and her broker were accused of lying about the transaction and altering records to support the alleged cover story. Stewart was easily the most recognizable face in the government crackdown on corporate crime that began with the collapse of Enron in 2001. Stewart's supporters claim she was being targeted because of her celebrity status. Stewart made herself into the nation's premier home-makby way of magazines, TV programs and everything from cookie cutters and garlic presses to bedsheets and pillows. Martketing experts have said that the company is so closely tied to her name and face that the effect could be devastating. "This is a terrible tragedy for a great brand," said Seth of The Siegel, Beanstalk Group, a trademark licensing agency. The government now may press to have her removed from the board of her company. She stepped down as chief executive after being indicted last summer but remains as chief creative officer. In a statement on her Web site, Stewart said: "I am obviously distressed by the jury's A3 PETfTES r.'EJ'S WEHTfS 55-7- 0 CfF YC'JTS i::.Vi STCr.E bcCTS! IDS QTl'S CCLLECTIS::3 CLETJIHICE f.ED TAG CLE' fflHWW cms GEM SATURDAY EARLY BIRDS 8AM - 1PM mm sip ii., l 1lit Si nl .. ': (:lV3:l ' i: Ititr :!): (tit): 'M'?:'t' iiij,Hii-n,- v T ST0 REVIDE BONUS COUPON ST0REWIDE BONUS COUPON FINE JEWELRY BONUS COUPON falcon? ANY SALE OR CLEARANCE PURCHASE VALID SATURDAY, MARCH 6 10 DISCOUNT ON HOME STORE, INTIMATE ANY SALE OR CLEARANCE PURCHASE VALID SATURDAY, MARCH 6 10 DISCOUNT ON HOME STORE, INTIMATE FOUNDATIONS, MEN'S, WOMEN'S & CHILDREN'S SHOES FOUNDATIONS, MEN'S, WOMEN'S & CHILDREN'S SHOES NO DISCOUNT on Fine Watches, Fine Best Values, Special Event & Bridal Collections, Superior Values, Bridge Sportswear & select laoies uesigners, wtuLUUT, tosmencs, fragrances, Easy Spirit, Coach, Dooney & Bourkejften's & Juniors & Kid's Designers, Juniors Moderate Denim Jeans, Levi's, Dockers, Slates, Designer Bed & Bath, Henckels, Small Electrics, Electronic Gifts, Vacuums, Scooters. MEIER ' on Fine Watches, Fine Best values, Special Event & Bridal Collections, Superior Values, Bridge Sportswear & select Ladies Designers, iueuluut, cosmetics, fragrances, Easy Spirit Coach, Dooney & Bourke, Men's & Juniors & Kid's Designers, Juniors Moderate Denim Jeans, Levi's, Dockers, Slates', Designer Bed & Bath, Henckels, Small Electrics, Electronic Gifts, Vacuums, Scooters. f . MEIER to ANDMEIERANDFRANK.com H . & FRANK "Limit one purchase pet coupon Extra savings applied to reduced prices. Not valid with any other offer or on previously Today Fashion Place 10AM-9Paccount first day discount on Furniture & Mattress purchases. Original pnces are offenng pnces only and may or may not have resulted in sales. Advertised i Auctions. Interim markdowns may rave teen taken, pnce AVAILABLE AT ALL STORES FINE JEWELRY PURCHASE "NO DISCOUNT & FRANK MEIER & FRANK GIFT CARDS ANY SALE OR CLEARANCE VALID SATURDAY, MARCH 6 NO DISCOUNT on Fine Watches, Special Event MEIER & Best Values, Bridal Collections. & FRANK purchased merchandise; service plans; speaaVmaiVphoneonline orders; Gift Card purchases. Ccrpons may not be combined or used in connection with new merchandise may be available at these or similar sale prices in upcoming sales events this season, Ongmal pnces are used tor merchandise with permanent MEIER & FRANK always something exciting I i OR BY SHOP ONLINE AT MEIERANDFRANK.com PHONE |