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American Morning
Star Witness in Case Against Martha Stewart Back on Stand
Aired February 04, 2004 - 08:15 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.
BILL HEMMER, CNN ANCHOR: The star witness in the case against Martha Stewart back on the stand this morning. Doug Faneuil continues his testimony in the obstruction of justice and securities fraud trial. He has not yet been questioned by Stewart's attorneys. That's expected this morning.
Deb Feyerick outside the courthouse there, the federal courthouse in lower Manhattan -- good morning.
DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Bill.
Well, you can bet the cross-examination is going to be blistering. But yesterday, Doug Faneuil came across as calm, competent, even complimentary, saying, "Peter was the best boss I ever had, demanding yet appreciative."
Doug Faneuil's eyes looked around the courtroom, but they never rested long on the co-defendants, Peter Bacanovic and Martha Stewart. Last time they met, it was in a very different setting.
(BEGIN VIDEOTAPE)
FEYERICK (voice-over): She had heard his voice on the phone about a half a dozen times. But for Martha Stewart sitting in federal court, it was the first face to face encounter with the soft-spoken assistant broker.
Doug Faneuil testified about a frantic day, December 27, 2001, the day he was left manning his boss's desk at Merrill Lynch, the day ImClone CEO Sam Waksal and his family, acting on an inside tip, tried unloading all their ImClone stock.
Faneuil testified first thing that morning he received a fax from Waksal's accountant. It instructed Faneuil's boss, Peter Bacanovic, to "transfer the entire balance to his daughter's account."
The fax saying it was, "imperative that the transfer take place December 27, first thing."
Faneuil testified he told Waksal's accountant it wasn't allowed under trading rules. Faneuil says he then called the vacationing Bacanovic, who agreed, telling him to confirm it with a Merrill Lynch manager.
Faneuil testified Bacanovic "tried to calm my nerves." It was then, Faneuil, says, Bacanovic exclaimed, "Oh my god, get Martha on the phone." Stewart was out of reach, on her way to Mexico for New Year's Eve. Faneuil testified Bacanovic gave him the following instructions: "Listen, Martha's going to call. You've got to tell her what's going on."
Faneuil, "Can I tell her about Sam? Am I allowed to?"
Bacanovic, "Of course. You must. That's the whole point."
(END VIDEOTAPE)
FEYERICK: Defense lawyers plan to downplay the urgency of Bacanovic's instructions. Instead, they will play up the fact that it was Faneuil who passed on the stock information and it was Faneuil who ultimately sold the stock -- Bill.
HEMMER: Deb, you talked to a lot of legal analysts down there. His testimony yesterday, who does it harm more at this point, Bacanovic or Martha Stewart?
FEYERICK: Right now it would harm Peter Bacanovic because he's really recounting what happened, the chain of events, who told him what, who told him what to do what. But he was really only on the stand for about an hour and 20 minutes. So it was a very gentle questioning by the prosecutor. Remember, he's their witness. And so it's really not going to be rough until Stewart's defense lawyer and Bacanovic's defense lawyer get a chance at him.
HEMMER: Cross-examination today.
Deborah Feyerick, 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 February 4, 2004 - 08:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: The star witness in the case against Martha Stewart back on the stand this morning. Doug Faneuil continues his testimony in the obstruction of justice and securities fraud trial. He has not yet been questioned by Stewart's attorneys. That's expected this morning.
Deb Feyerick outside the courthouse there, the federal courthouse in lower Manhattan -- good morning.
DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Bill.
Well, you can bet the cross-examination is going to be blistering. But yesterday, Doug Faneuil came across as calm, competent, even complimentary, saying, "Peter was the best boss I ever had, demanding yet appreciative."
Doug Faneuil's eyes looked around the courtroom, but they never rested long on the co-defendants, Peter Bacanovic and Martha Stewart. Last time they met, it was in a very different setting.
(BEGIN VIDEOTAPE)
FEYERICK (voice-over): She had heard his voice on the phone about a half a dozen times. But for Martha Stewart sitting in federal court, it was the first face to face encounter with the soft-spoken assistant broker.
Doug Faneuil testified about a frantic day, December 27, 2001, the day he was left manning his boss's desk at Merrill Lynch, the day ImClone CEO Sam Waksal and his family, acting on an inside tip, tried unloading all their ImClone stock.
Faneuil testified first thing that morning he received a fax from Waksal's accountant. It instructed Faneuil's boss, Peter Bacanovic, to "transfer the entire balance to his daughter's account."
The fax saying it was, "imperative that the transfer take place December 27, first thing."
Faneuil testified he told Waksal's accountant it wasn't allowed under trading rules. Faneuil says he then called the vacationing Bacanovic, who agreed, telling him to confirm it with a Merrill Lynch manager.
Faneuil testified Bacanovic "tried to calm my nerves." It was then, Faneuil, says, Bacanovic exclaimed, "Oh my god, get Martha on the phone." Stewart was out of reach, on her way to Mexico for New Year's Eve. Faneuil testified Bacanovic gave him the following instructions: "Listen, Martha's going to call. You've got to tell her what's going on."
Faneuil, "Can I tell her about Sam? Am I allowed to?"
Bacanovic, "Of course. You must. That's the whole point."
(END VIDEOTAPE)
FEYERICK: Defense lawyers plan to downplay the urgency of Bacanovic's instructions. Instead, they will play up the fact that it was Faneuil who passed on the stock information and it was Faneuil who ultimately sold the stock -- Bill.
HEMMER: Deb, you talked to a lot of legal analysts down there. His testimony yesterday, who does it harm more at this point, Bacanovic or Martha Stewart?
FEYERICK: Right now it would harm Peter Bacanovic because he's really recounting what happened, the chain of events, who told him what, who told him what to do what. But he was really only on the stand for about an hour and 20 minutes. So it was a very gentle questioning by the prosecutor. Remember, he's their witness. And so it's really not going to be rough until Stewart's defense lawyer and Bacanovic's defense lawyer get a chance at him.
HEMMER: Cross-examination today.
Deborah Feyerick, 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
