Return to Transcripts main page
CNN Live Today
Opening Statements Begin in Martha Stewart Trial
Aired January 27, 2004 - 11:36 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 LIN, CNN ANCHOR: Opening statements are under way today in Martha Stewart's securities fraud trial.
CNN financial correspondent Mary Snow checks in this morning from the federal courthouse in Manhattan.
Are things well under way, Mary? Anything interesting?
MARY SNOW, CNN FINANCIAL NEWS CORRESPONDENT: They are well under way, Carol. And the government has finished its opening statements. So, lawyers for Peter Bacanovic, the stockbroker, formerly Martha Stewart's stockbroker, lawyers are giving their opening statements, saying that Martha Stewart's sale of ImClone shares back in December of 2001 were, in their words, cleaning house. And then Martha Stewart's lawyers will give their opening statements.
Stewart arriving at court this morning saying that she feels great. And today, she was joined by family members. Her mother arriving at court, along with her sister, her daughter, Alexis, is also said to be in the courthouse.
And once these statements are finished then the government will begin to call its first witnesses.
At the heart of this case is the question: Did Martha Stewart lie about her sale of ImClone shares? Prosecutors are trying to convince a jury that she conspired with her former stockbroker to cover up the circumstances surrounding that sale. And defense attorneys will say that the two had an agreement to sell those shares once they hit a certain limit.
Now, today, it is possible that the government's star witness, Doug Faneuil -- he's 28 years old, he was the former assistant to Peter Bacanovic -- he could be testifying as early as today. And he is going to be telling the court that Stewart and her broker did not have that agreement.
The question is, though, Stewart's lawyers say they are going to question his credibility because Faneuil initially backed up the story about the agreement and then he changed that story once he began cooperating with investigators.
And, Carol, this trial is expected to last six weeks.
LIN: You know, what's interesting about this dialogue about having this pre-arranged agreement and the makeup of the jury. You know, it's, what, eight women and four men on the sitting jury. And it kind of gives us a preview into the strategy by the defense attorneys, perhaps hoping that the women are going to be able to relate to even a woman as powerful as Martha Stewart having a casual conversation on the telephone with her broker, where they talk about this but there's no record of that actual conversation. So, that what is the strategy? Is it that the women on the jury might be more sympathetic, according to the defense attorneys, to that position?
SNOW: Well, Carol, a good number of the women who were chosen for this jury -- it's eight women, four men -- are professional women. And jury consultants say that Stewart's attorneys were really looking for that, because they wanted women who could relate to a successful woman like Martha Stewart.
Also, a number of the jurors who were chosen are somewhat familiar with stock trades and the financial community. And that, say lawyers, is also very important, because they will understand the nuances and not just put together all the Wall Street scandals. For instance, being able to separate, let's say, the Enrons of the world from this case.
So, that is something that jury consultants say could really work in favor of the defense.
LIN: Right. Interesting. So, that they don't make assumptions about Martha Stewart based on just her media reputation alone. All right, thank you very much.
SNOW: Sure.
LIN: All right, thank you very much. Mary Snow reporting live outside the federal courthouse.
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 January 27, 2004 - 11:36 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: Opening statements are under way today in Martha Stewart's securities fraud trial.
CNN financial correspondent Mary Snow checks in this morning from the federal courthouse in Manhattan.
Are things well under way, Mary? Anything interesting?
MARY SNOW, CNN FINANCIAL NEWS CORRESPONDENT: They are well under way, Carol. And the government has finished its opening statements. So, lawyers for Peter Bacanovic, the stockbroker, formerly Martha Stewart's stockbroker, lawyers are giving their opening statements, saying that Martha Stewart's sale of ImClone shares back in December of 2001 were, in their words, cleaning house. And then Martha Stewart's lawyers will give their opening statements.
Stewart arriving at court this morning saying that she feels great. And today, she was joined by family members. Her mother arriving at court, along with her sister, her daughter, Alexis, is also said to be in the courthouse.
And once these statements are finished then the government will begin to call its first witnesses.
At the heart of this case is the question: Did Martha Stewart lie about her sale of ImClone shares? Prosecutors are trying to convince a jury that she conspired with her former stockbroker to cover up the circumstances surrounding that sale. And defense attorneys will say that the two had an agreement to sell those shares once they hit a certain limit.
Now, today, it is possible that the government's star witness, Doug Faneuil -- he's 28 years old, he was the former assistant to Peter Bacanovic -- he could be testifying as early as today. And he is going to be telling the court that Stewart and her broker did not have that agreement.
The question is, though, Stewart's lawyers say they are going to question his credibility because Faneuil initially backed up the story about the agreement and then he changed that story once he began cooperating with investigators.
And, Carol, this trial is expected to last six weeks.
LIN: You know, what's interesting about this dialogue about having this pre-arranged agreement and the makeup of the jury. You know, it's, what, eight women and four men on the sitting jury. And it kind of gives us a preview into the strategy by the defense attorneys, perhaps hoping that the women are going to be able to relate to even a woman as powerful as Martha Stewart having a casual conversation on the telephone with her broker, where they talk about this but there's no record of that actual conversation. So, that what is the strategy? Is it that the women on the jury might be more sympathetic, according to the defense attorneys, to that position?
SNOW: Well, Carol, a good number of the women who were chosen for this jury -- it's eight women, four men -- are professional women. And jury consultants say that Stewart's attorneys were really looking for that, because they wanted women who could relate to a successful woman like Martha Stewart.
Also, a number of the jurors who were chosen are somewhat familiar with stock trades and the financial community. And that, say lawyers, is also very important, because they will understand the nuances and not just put together all the Wall Street scandals. For instance, being able to separate, let's say, the Enrons of the world from this case.
So, that is something that jury consultants say could really work in favor of the defense.
LIN: Right. Interesting. So, that they don't make assumptions about Martha Stewart based on just her media reputation alone. All right, thank you very much.
SNOW: Sure.
LIN: All right, thank you very much. Mary Snow reporting live outside the federal courthouse.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
