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CNN Live Today

Martha Stewart Probe

Aired September 06, 2002 - 13:23   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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LOUISE SCHIAVONE, CNN CORRESPONDENT: A spokesman for the panel says, -- quote -- "We've reached the end of the road with Martha Stewart." This will no doubt be a hot conversation topic for key lawmakers as they gather today on Martha's turf. That is New York City. The chairman of the committee, Billy Tauzin, has already decided upon the next step, to be announced Tuesday. That step could be a subpoena to appear before Congress, a referral for criminal investigation, or dropping the case altogether, although the last seems unlikely.

Ken Johnson, chairman Tauzin spokesman, tells CNN quote: "We're way past the issue of insider trading. We are now concerned about two major issues, making false statements and obstructing a congressional investigation."

The committee is concerned by what it calls inconsistencies in Stewart's stories, the latest highlighted by evidence uncovered by panel investigators.

Both Stewart and ImClone founder Sam Waksal insist they had no phone conversations in the days immediately before and after Stewart's stock sale. But staffers have found a cell phone record indicating there was a call December 31, 2001. Johnson said the committee is concerned that -- quote -- "Someone has lied to the committee."

A spokesman for Martha Stewart has issued an official, no comment.

Now, Kyra, I should tell you, that in "Martha Stewart Living" magazine, the September calendar for today notes -- quote -- "Pick plumbs and make plumb galet, and tomorrow, Kyra, is wash all cats."

PHILLIPS: How is her company doing, by the way?

SCHIAVONE: Well, they've had, of course, a lot of gyrations associated with this. Today the stock is traded at a little bit over $7 a share. The 52-week high was over $20 a share. So they've had their problem. But it is not as bad as we've seen other companies under assault go. For instance, we've seen WorldCom and Enron go down in single, you know, into the dollars and senses, so they are penny stocks. So Martha Stewart's stock could be doing worse; it's not too bad.

PHILLIPS: Louise Schiavone, thanks for that advice there. We appreciate it. SCHIAVONE: Wash all cats.

PHILLIPS: There you go.

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