USA: FORMER IMCLONE SYSTEMS INC CHIEF EXECUTIVE SAMUEL WAKSAL PLEADS NOT GUILTY TO BANKING AND SECURITIES FRAUD CHARGES

Record ID: 649106

  • Title: USA: FORMER IMCLONE SYSTEMS INC CHIEF EXECUTIVE SAMUEL WAKSAL PLEADS NOT GUILTY TO BANKING AND SECURITIES FRAUD CHARGES
  • Date: 14th August 2002
  • Summary: (U7) NEW YORK CITY, NEW YORK, UNITED STATES (AUGUST 12, 2002) (REUTERS) 1. SAM WAKSAL, FORMER CEO IMCLONE, WALKING INTO COURT, SURROUNDED BY MEDIA; SLV COURTHOUSE; MV LAWYERS AND WAKSAL LEAVING COURTHOUSE; MV POLICEMAN OUTSIDE COURT (4 SHOTS) 0.34 2. (SOUNDBITE) (English) WAKSAL SAYING "The past few months have been extremely challenging and emotionally draining for me, my family and my friends, I would like to thank all those who have supported me at this time. My attorneys and I look forward to addressing these charges in the appropriate forum, the courts. As this process begins I would like to set the record straight on two points, first I believe the drug Erbitux, which I have worked to bring to the public for over ten years has the potential to help millions of cancer patients. I founded ImClone in order to discover new drugs to meet the unmet medical needs of our society, I know that this breakthrough therapy will one day make a great difference to the lives of many gravely ill people. Secondly ImClone itself is a strong and solid company whose scientists and other employees have devoted themselves to achieving a noble goal, ImClone will grow prosper and continue its very important work." 1.43 3. SCU CAMERA OPERATOR 1.46 4. (SOUNDBITE) (English) MARK POMERANTZ, ATTORNEY FOR WAKSAL, SAYING "We know his case has been associated with a lot of other recent corporate scandals, as this matter proceeds we hope that it will be judged on the merits." 1.56 5. SCU COURTHOUSE SIGN; MV WAKSAL'S CAR DRIVING AWAY (2 SHOTS) 2.11 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 29th August 2002 13:00
  • Keywords:
  • Location: NEW YORK CITY, NEW YORK, UNITED STATES
  • City:
  • Country: USA
  • Reuters ID: LVAE3MNT6R3MLJ891XTU0D1GNTHO
  • Story Text: Former ImClone Systems Inc. Chief Executive Samuel
    Waksal pleaded not guilty on Monday to banking and securities
    fraud charges in an insider trading probe that threatens to
    catch homemaking guru Martha Stewart in its net.

    Walking into the US Federal Courthouse in Manhattan,
    former ImClone CEO Sam Waksal refused to comment to
    the mob of reporters clustered around him.

    Waksal, 54, who was previously charged with insider
    trading, was named in a 13-count indictment last Wednesday
    accusing him of obstruction of justice, bank fraud and
    expanded securities wrong doings. If convicted on the bank
    fraud count alone, he could face up to 30 years in prison.

    He plead not guilty to the charges, and after the short
    hearing, told reporters he had faith in ImClone, whose new CEO
    is his brother Harlan.

    "The past few months have been extremely challenging and
    emotionally draining for me, my family and my friends, I would
    like to thank all those who have supported me at this time. My
    attorneys and I look forward to addressing these charges in
    the appropriate forum - the courts. As this process begins I
    would like to set the record straight on two points, first I
    believe the drug Erbitux, which I have worked to bring to the
    public for over ten years has the potential to help millions
    of cancer patients."
    The investigation stems from allegations that Waksal
    tried to sell ImClone shares ahead of a public announcement
    last December that the U.S. Food and Drug Administration would
    reject ImClone's application to market its highly touted new
    cancer drug, Erbitux. He is also accused of allegedly tipping
    off two family members.

    Stewart, a friend of Waksal and chief executive of Martha
    Stewart Living Omnimedia Inc. is also under investigation for
    selling nearly 4,000 shares of ImClone the day before the FDA
    news was made public. She has repeatedly said her sale was
    lawful and based on public information.

    But prosecutors and congressional investigators continue to
    delve into the links between Waksal and Stewart.

    The House Energy and Commerce Committee last week said it
    had received e-mails between Stewart's stockbroker and his
    assistant that suggested they knew about impending bad news
    about ImClone just before the FDA announcement.

    The case is one of several scandals that have sapped
    investor confidence in corporate America and helped fuel a
    bear market on Wall Street this year.

    Tentatively, the trial is slated to begin either on Dec. 9
    or Feb. 10, and is expected to last three to four weeks.

    Waksal remains free on bail.

    Waksal has been charged with defrauding Bank of America
    Corp. by pledging ImClone securities that he no longer owned
    to secure loans made to him by the bank. He allegedly forged
    the signature of ImClone's general counsel on a document to
    fool the bank into believing he still owned securities that
    were backing $44 million in loans.

    Waksal is also accused of trying to obstruct the Securities
    and Exchange Commission's investigation into alleged insider
    trading in ImClone shares.


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