Return to Transcripts main page

CNN Live At Daybreak

Corporate Greed: Waksal Sentencing

Aired June 10, 2003 - 06:32   ET

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


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


CAROL COSTELLO, CNN ANCHOR: Corporate greed in the spotlight this morning. Former ImClone CEO Sam Waksal returns to a federal courtroom in New York City just about three-and-a-half hours from now. Waksal is due to be sentenced after pleading guilty to charges, including insider trading, bank fraud and tax evasion. That sentencing set for 10:00 Eastern Time.
Sean Callebs live in New York now, though, at the courthouse. He joins us with much more on this story.

Good morning -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Carol.

You're exactly right. The head of ImClone, the former head of InClone, Sam Waksal is scheduled to show up here later this morning. And remember, his insider trading scandal also touched Martha Stewart.

Now, Waksal is seen as one of the poster boys of corporate greed and corruption, someone who lived the good life during the economic boom only to see his fortune come crashing down.

(BEGIN VIDEOTAPE)

CALLEBS (voice-over): Former ImClone CEO Sam Waksal faces a fine of as much as $3.5 million and up to 75 years in prison. However, the U.S. attorney's office says federal sentencing guidelines point to incarceration of perhaps six to seven years.

Sentencing will cap a dramatic fall for the 55-year-old ex-chief of the biotech company after pleading guilty to insider trading back in 2002.

SAM WAKSAL, FORMER CEO, IMCLONE: I've made some terrible mistakes, and I deeply regret what has happened. I was wrong.

CALLEBS: Waksal's trouble started in late 2001, when he received a tip from his brother, the then COO of ImClone, that the FDA would not approve its highly-touted new cancer drug. Waksal then tried to unload a massive block of ImClone, knowing the FDA rejection would drive the price of the stock down.

In a separate matter, Waksal also pleaded guilty to evading taxes on $15 million worth of artwork.

Waksal's fall has also entangled home entertainment guru, Martha Stewart. Stewart, a close Waksal friend, was indicted last week for securities fraud and obstruction of justice. She pleaded not guilty.

Waksal's sentencing is seen as significant. He is the highest- ranking executive to be punished in the recent wave of corporate wrongdoing. Some executives from Enron, Arthur Andersen and WorldCom have pleaded guilty and are awaiting sentencing. Martha Stewart and leaders of Tyco, Adelphia and other companies are fighting charges.

(END VIDEOTAPE)

Now, many observers are closely watching Waksal's sentencing, believing if the judge indeed throws the book at him, it could set the tone and send a message that the courts are going to be tough on other top executives guilty of greed and corruption.

Live in Manhattan, I'm Sean Callebs.

Carol -- back to you.

COSTELLO: All right, thank you, Sean. Many thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.






Aired June 10, 2003 - 06:32   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Corporate greed in the spotlight this morning. Former ImClone CEO Sam Waksal returns to a federal courtroom in New York City just about three-and-a-half hours from now. Waksal is due to be sentenced after pleading guilty to charges, including insider trading, bank fraud and tax evasion. That sentencing set for 10:00 Eastern Time.
Sean Callebs live in New York now, though, at the courthouse. He joins us with much more on this story.

Good morning -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Carol.

You're exactly right. The head of ImClone, the former head of InClone, Sam Waksal is scheduled to show up here later this morning. And remember, his insider trading scandal also touched Martha Stewart.

Now, Waksal is seen as one of the poster boys of corporate greed and corruption, someone who lived the good life during the economic boom only to see his fortune come crashing down.

(BEGIN VIDEOTAPE)

CALLEBS (voice-over): Former ImClone CEO Sam Waksal faces a fine of as much as $3.5 million and up to 75 years in prison. However, the U.S. attorney's office says federal sentencing guidelines point to incarceration of perhaps six to seven years.

Sentencing will cap a dramatic fall for the 55-year-old ex-chief of the biotech company after pleading guilty to insider trading back in 2002.

SAM WAKSAL, FORMER CEO, IMCLONE: I've made some terrible mistakes, and I deeply regret what has happened. I was wrong.

CALLEBS: Waksal's trouble started in late 2001, when he received a tip from his brother, the then COO of ImClone, that the FDA would not approve its highly-touted new cancer drug. Waksal then tried to unload a massive block of ImClone, knowing the FDA rejection would drive the price of the stock down.

In a separate matter, Waksal also pleaded guilty to evading taxes on $15 million worth of artwork.

Waksal's fall has also entangled home entertainment guru, Martha Stewart. Stewart, a close Waksal friend, was indicted last week for securities fraud and obstruction of justice. She pleaded not guilty.

Waksal's sentencing is seen as significant. He is the highest- ranking executive to be punished in the recent wave of corporate wrongdoing. Some executives from Enron, Arthur Andersen and WorldCom have pleaded guilty and are awaiting sentencing. Martha Stewart and leaders of Tyco, Adelphia and other companies are fighting charges.

(END VIDEOTAPE)

Now, many observers are closely watching Waksal's sentencing, believing if the judge indeed throws the book at him, it could set the tone and send a message that the courts are going to be tough on other top executives guilty of greed and corruption.

Live in Manhattan, I'm Sean Callebs.

Carol -- back to you.

COSTELLO: All right, thank you, Sean. Many thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.