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American Morning
Martha Stewart Arrives at Courthouse
Aired February 09, 2004 - 09:16 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: Here in New York City a few moments ago, Martha Stewart arriving at the courthouse in lower Manhattan. Her trial getting under way for another week this morning. Stewart's attorneys will get their first chance to confront Douglas Faneuil, the prosecution's star witness. Faneuil delivered his testimony regarding Stewart's sale of ImClone stock last week. He's back on the stand today. Some legal observers have indicated already his testimony could be damaging to Martha Stewart and Peter Bacanovic.
Let's check in with Deborah Feyerick right now what's expected today -- good morning.
DEBORAH FEYERICK, CNN CORRESPONDENT: Morning, Bill.
Well, so far it has been damaging, and that is something that Stewart's lawyers are going to try to correct today. They're going to have to make several key points. Chief among them is that the assistant broker, Doug Faneuil, was trying to insert himself into situations believing he had more knowledge about Stewart's accounts than he actually did. They will try to portray him as playing the big man, handling trades he was not licensed to handle; also, giving Stewart information thinking it was the whole story when, in fact, it was just a part of the story.
Of course, Stewart has always maintained that she and her broker, Peter Bacanovic, had a stop-loss agreement so that if ImClone fell below $60, they would sell it. Coincidentally, they sold it the same day as CEO of ImClone, Sam Waksal, was dumping all of his shares.
Now, last week lawyers for Stewart's broker, Peter Bacanovic, had Faneuil on the stand cross-examining him. They were trying to punch holes in his story that he was paid in order to continue what he called the cover-up. They say it was no cover-up, that any perks that Faneuil was offered, in fact, were perks that had been offered to Bacanovic's earlier assistant -- Bill.
HEMMER: Court again today.
Debora, thanks.
Deborah Feyerick there.
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 9, 2004 - 09:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Here in New York City a few moments ago, Martha Stewart arriving at the courthouse in lower Manhattan. Her trial getting under way for another week this morning. Stewart's attorneys will get their first chance to confront Douglas Faneuil, the prosecution's star witness. Faneuil delivered his testimony regarding Stewart's sale of ImClone stock last week. He's back on the stand today. Some legal observers have indicated already his testimony could be damaging to Martha Stewart and Peter Bacanovic.
Let's check in with Deborah Feyerick right now what's expected today -- good morning.
DEBORAH FEYERICK, CNN CORRESPONDENT: Morning, Bill.
Well, so far it has been damaging, and that is something that Stewart's lawyers are going to try to correct today. They're going to have to make several key points. Chief among them is that the assistant broker, Doug Faneuil, was trying to insert himself into situations believing he had more knowledge about Stewart's accounts than he actually did. They will try to portray him as playing the big man, handling trades he was not licensed to handle; also, giving Stewart information thinking it was the whole story when, in fact, it was just a part of the story.
Of course, Stewart has always maintained that she and her broker, Peter Bacanovic, had a stop-loss agreement so that if ImClone fell below $60, they would sell it. Coincidentally, they sold it the same day as CEO of ImClone, Sam Waksal, was dumping all of his shares.
Now, last week lawyers for Stewart's broker, Peter Bacanovic, had Faneuil on the stand cross-examining him. They were trying to punch holes in his story that he was paid in order to continue what he called the cover-up. They say it was no cover-up, that any perks that Faneuil was offered, in fact, were perks that had been offered to Bacanovic's earlier assistant -- Bill.
HEMMER: Court again today.
Debora, thanks.
Deborah Feyerick there.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
