New York
ImClone Systems founder Sam Waksal—a close friend of Martha Stewart—became the latest casualty of the corporate scandals this week, pleading guilty to bank fraud, conspiracy, and perjury. Waksal, prosecutors said, warned family members to sell ImClone stock when he discovered that federal regulators would reject the company’s new cancer drug. Stewart also sold off 4,000 ImClone shares before the stock plummeted, and is apparently a target of a continuing insider-trading investigation. Douglas Faneuil, an assistant to Stewart’s stockbroker, pleaded guilty to a misdemeanor charge earlier this month and agreed to testify for the prosecution.
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