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CNN Live Today

Stewart Stock Scandal

Aired June 19, 2003 - 10:32   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.


HEIDI COLLINS, CNN ANCHOR: From the boardroom and living room to the courtroom now. This is a live picture as we wait for Martha Stewart's arrival at court. Stewart was indicted two weeks ago on five counts related to her sale of ImClone stock in 2001. She has pleaded not guilty.
Technically, today's proceeding for Stewart is called a status hearing. It's described as a routine taken step for lawyers to take care of housekeeping matters, which sounds a little ironic under the circumstances.

CNN's legal analyst Jeffrey Toobin joining us now to explain what exactly this is all about and the other aspects of the case.

Hello to you, Jeffrey.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Hey, Heidi, there's nothing routine when Martha Stewart is involved, especially when she's involved with housekeeping.

COLLINS: If you could possibly tell us we know that there are several charges. Can you kind of hone in for us on exactly what the biggest charge is and how that will be handled?

TOOBIN: It's really straightforward. There are really sort of three groups of charges. One is obstruction of justice, which is lying to investigators. The other is conspiracy to obstruct justice, which means agreeing with her co-defendant, Peter Bacanovic, the Maryland stockbroker, to obstruct justice, agreeing to lie. And the final is the most unusual, which is securities fraud, which is where she's accused of lying to investors, basically illegally pumping up her stock by saying that she's not guilty of these charges. Those are really the charges against her.

And today, the main thing that they're going to do is deal with a question of scheduling, about when she's going to go to trial. And you know, that's when things get interesting for her, because the stock market wants certainty, the stock market wants a quick trial, guilty, not guilty, get it over with. But Martha Stewart, the criminal defendant, probably wants a long delay. That's what defendants always want. So there's a conflict in her own priorities. We'll see how that plays out today.

COLLINS: So, Jeffrey, we know that her lawyers have, you know, drafted several motions, as you say, some of them routine. But there's actually one to dismiss the charges altogether. What are your thoughts on that? TOOBIN: Well, that also is pretty routine. The -- in federal court, the lawyers will always move to dismiss the charges. And I think when it comes to the obstruction of justice and conspiracy to obstruct justice, their lawyers have pretty much no chance. Those will certainly go to trial.

This securities fraud charge that I mentioned, this idea of trying to pump up your stock by saying you're not guilty, that's a more questionable charge. and I think her lawyers at least have a reasonable chance of getting that one dismissed before she goes to trial. We'll see.

COLLINS: So the fact that Judge Sederbaum (ph) requested that Martha Stewart be there physically today, does that mean that there is any more importance kind of nailed to this actual proceeding?

TOOBIN: Not really. Judge Sederbaum is someone who really wants this trial to be seen as just another criminal trial, even though it's a high-profile defendant. In virtually every criminal case that I've ever seen, the defendant is required to show up every time there's a court hearing, even if the defendant is really not expected to do anything. Certainly, Martha Stewart is not expected to do or say anything in court today. But I think she wants to send the message that you're not getting any special treatment, Miss Stewart, you have to show up, even though, as you can see behind me, it's a modest circus, not a big circus. And there's some additional security requirements on the court. She just wants to make -- send a message that Martha Stewart has to be treated like every other defendant.

COLLINS: Jeffrey, any word on how Martha is actually doing? We know about the Web site she set up a while ago to bolster support for herself and her case. Is that helping?

TOOBIN: Well, I think she has felt very frustrated. I interviewed her in January, and it was clear that she was really frustrated by all this sort of outpouring of people making fun of her, people having this fun at her expense.

I think the Web site, marthatalks.com, is an effort on her part to say, hey, you know, Leno and Letterman may make fun of me, but there are thousands of people who support me, who buy my magazines, who watch me on television. They're the people that are out there too. She's getting, apparently, a lot of e-mails on the Web site.

I think -- I don't know how much impact that will have ultimately on the 12 people who decide her fate, but I think she definitely wants, now that the case has been charged, to show the world that there are people on her side as well.

COLLINS: And what's your gut feeling, Jeffrey, about when this actual trial might actually begin?

TOOBIN: Boy, that's a tough case. I'm about to run in court and we'll find out. It's a tough question, that is. My guess is three to six months from now, I think is more -- is sort of my rough guess, more toward the six-month side. We'll know a lot more in about an hour when this hearing starts.

COLLINS: Which of course we'll check back with you for all the latest info.

Jeffrey Toobin, thanks so much, in Manhattan.

TOOBIN: I'll run right out and tell you.

COLLINS: All right, very good. Thanks, Jeffrey.

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 19, 2003 - 10:32   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: From the boardroom and living room to the courtroom now. This is a live picture as we wait for Martha Stewart's arrival at court. Stewart was indicted two weeks ago on five counts related to her sale of ImClone stock in 2001. She has pleaded not guilty.
Technically, today's proceeding for Stewart is called a status hearing. It's described as a routine taken step for lawyers to take care of housekeeping matters, which sounds a little ironic under the circumstances.

CNN's legal analyst Jeffrey Toobin joining us now to explain what exactly this is all about and the other aspects of the case.

Hello to you, Jeffrey.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Hey, Heidi, there's nothing routine when Martha Stewart is involved, especially when she's involved with housekeeping.

COLLINS: If you could possibly tell us we know that there are several charges. Can you kind of hone in for us on exactly what the biggest charge is and how that will be handled?

TOOBIN: It's really straightforward. There are really sort of three groups of charges. One is obstruction of justice, which is lying to investigators. The other is conspiracy to obstruct justice, which means agreeing with her co-defendant, Peter Bacanovic, the Maryland stockbroker, to obstruct justice, agreeing to lie. And the final is the most unusual, which is securities fraud, which is where she's accused of lying to investors, basically illegally pumping up her stock by saying that she's not guilty of these charges. Those are really the charges against her.

And today, the main thing that they're going to do is deal with a question of scheduling, about when she's going to go to trial. And you know, that's when things get interesting for her, because the stock market wants certainty, the stock market wants a quick trial, guilty, not guilty, get it over with. But Martha Stewart, the criminal defendant, probably wants a long delay. That's what defendants always want. So there's a conflict in her own priorities. We'll see how that plays out today.

COLLINS: So, Jeffrey, we know that her lawyers have, you know, drafted several motions, as you say, some of them routine. But there's actually one to dismiss the charges altogether. What are your thoughts on that? TOOBIN: Well, that also is pretty routine. The -- in federal court, the lawyers will always move to dismiss the charges. And I think when it comes to the obstruction of justice and conspiracy to obstruct justice, their lawyers have pretty much no chance. Those will certainly go to trial.

This securities fraud charge that I mentioned, this idea of trying to pump up your stock by saying you're not guilty, that's a more questionable charge. and I think her lawyers at least have a reasonable chance of getting that one dismissed before she goes to trial. We'll see.

COLLINS: So the fact that Judge Sederbaum (ph) requested that Martha Stewart be there physically today, does that mean that there is any more importance kind of nailed to this actual proceeding?

TOOBIN: Not really. Judge Sederbaum is someone who really wants this trial to be seen as just another criminal trial, even though it's a high-profile defendant. In virtually every criminal case that I've ever seen, the defendant is required to show up every time there's a court hearing, even if the defendant is really not expected to do anything. Certainly, Martha Stewart is not expected to do or say anything in court today. But I think she wants to send the message that you're not getting any special treatment, Miss Stewart, you have to show up, even though, as you can see behind me, it's a modest circus, not a big circus. And there's some additional security requirements on the court. She just wants to make -- send a message that Martha Stewart has to be treated like every other defendant.

COLLINS: Jeffrey, any word on how Martha is actually doing? We know about the Web site she set up a while ago to bolster support for herself and her case. Is that helping?

TOOBIN: Well, I think she has felt very frustrated. I interviewed her in January, and it was clear that she was really frustrated by all this sort of outpouring of people making fun of her, people having this fun at her expense.

I think the Web site, marthatalks.com, is an effort on her part to say, hey, you know, Leno and Letterman may make fun of me, but there are thousands of people who support me, who buy my magazines, who watch me on television. They're the people that are out there too. She's getting, apparently, a lot of e-mails on the Web site.

I think -- I don't know how much impact that will have ultimately on the 12 people who decide her fate, but I think she definitely wants, now that the case has been charged, to show the world that there are people on her side as well.

COLLINS: And what's your gut feeling, Jeffrey, about when this actual trial might actually begin?

TOOBIN: Boy, that's a tough case. I'm about to run in court and we'll find out. It's a tough question, that is. My guess is three to six months from now, I think is more -- is sort of my rough guess, more toward the six-month side. We'll know a lot more in about an hour when this hearing starts.

COLLINS: Which of course we'll check back with you for all the latest info.

Jeffrey Toobin, thanks so much, in Manhattan.

TOOBIN: I'll run right out and tell you.

COLLINS: All right, very good. Thanks, Jeffrey.

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