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American Morning
Minding Your Business: Sam Waksal Faces the Music
Aired June 10, 2003 - 07:45 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: Back here in New York, a day of reckoning quite possibly for Sam Waksal.
Andy Serwer is minding our business today.
Today's the day, huh?
ANDY SERWER, "FORTUNE" MAGAZINE: That's right. Good morning to you, guys.
Weve heard people ranting, raving, what's happening with these white collar criminals? Why aren't they getting any jail time? Well, today our wait could be over because it really it appears that Sam Waksal will be facing jail time. The hearing begins at 10:00 a.m. this morning.
There he is. Raise that hand up and tell the truth, OK?
DARYN KAGAN, CNN ANCHOR: How much, though?
SERWER: Well, interesting, Daryn. Probably about six to seven years. Some people are suggesting three. He could get up to 70. That's not going to happen. You can see there, six to seven likely. The fine: $3.5 million. He will get jail time. If you talk to legal experts, I mean, this is...
HEMMER: No-brainer?
SERWER: Yes. Because -- and there's a couple of reasons. First of all, he pled guilty, that's No. 1.
KAGAN: There's that.
SERWER: There is that little slight point. And the other thing is that he didn't act contrite. I mean, he never flipped on Martha Stewart, never ratted her out. And also with his family members he said, well, they didn't do anything wrong.
KAGAN: He was protecting them.
SERWER: He was protecting them, and that's understandable.
KAGAN: Yes.
SERWER: Basically, here's a guy who said the only thing I ever did wrong was the stuff you caught me doing, right, you know?
KAGAN: Oh!
SERWER: And the feds are not so keen on that behavior.
HEMMER: Do you think he's the first of many? Or do you think he is now the exception and will stand as that?
SERWER: No, I think he's the first of many.
But I want to tell you something. He was easy, because this was a flagrant case of insider trading. The rest of...
KAGAN: But you say over and over it's not easy to prove.
SERWER: It's not that easy, but it's easier than an Enron or a Tyco or a Global Crossing. I mean, you try bringing -- this is the whole thing. You try bringing Enron to a jury trial. I mean, it's just very, very complicated. The investigators themselves have a hard time understanding it. And then you've got to convey to a jury of peers that this was criminal behavior and this person needs to go to jail, very complicated.
KAGAN: Quickly, quickly, the FBI I understand took Martha Stewart's mug shots yesterday?
SERWER: Yes, I mean...
KAGAN: Where are the pictures? Weve got to see this.
SERWER: Where are the pics? I mean, this is the problem. I mean, this is the special treatment thing again. Apparently she was whisked into a building here in the city, and they took mug shots. The mug shots are not available. Apparently this is uncommon. Usually you can get these things.
HEMMER: It's public record.
KAGAN: Yes.
SERWER: A public matter, a public record. I would imagine at some point we will see these pictures and, of course, they will be fodder, fodder, fodder.
HEMMER: Yes, I bet they will.
KAGAN: You'll see them on the late-night shows. That's where you'll see them.
SERWER: Yes.
HEMMER: See you next hour.
SERWER: OK, see you later.
KAGAN: Thank you.
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 - 07:45 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Back here in New York, a day of reckoning quite possibly for Sam Waksal.
Andy Serwer is minding our business today.
Today's the day, huh?
ANDY SERWER, "FORTUNE" MAGAZINE: That's right. Good morning to you, guys.
Weve heard people ranting, raving, what's happening with these white collar criminals? Why aren't they getting any jail time? Well, today our wait could be over because it really it appears that Sam Waksal will be facing jail time. The hearing begins at 10:00 a.m. this morning.
There he is. Raise that hand up and tell the truth, OK?
DARYN KAGAN, CNN ANCHOR: How much, though?
SERWER: Well, interesting, Daryn. Probably about six to seven years. Some people are suggesting three. He could get up to 70. That's not going to happen. You can see there, six to seven likely. The fine: $3.5 million. He will get jail time. If you talk to legal experts, I mean, this is...
HEMMER: No-brainer?
SERWER: Yes. Because -- and there's a couple of reasons. First of all, he pled guilty, that's No. 1.
KAGAN: There's that.
SERWER: There is that little slight point. And the other thing is that he didn't act contrite. I mean, he never flipped on Martha Stewart, never ratted her out. And also with his family members he said, well, they didn't do anything wrong.
KAGAN: He was protecting them.
SERWER: He was protecting them, and that's understandable.
KAGAN: Yes.
SERWER: Basically, here's a guy who said the only thing I ever did wrong was the stuff you caught me doing, right, you know?
KAGAN: Oh!
SERWER: And the feds are not so keen on that behavior.
HEMMER: Do you think he's the first of many? Or do you think he is now the exception and will stand as that?
SERWER: No, I think he's the first of many.
But I want to tell you something. He was easy, because this was a flagrant case of insider trading. The rest of...
KAGAN: But you say over and over it's not easy to prove.
SERWER: It's not that easy, but it's easier than an Enron or a Tyco or a Global Crossing. I mean, you try bringing -- this is the whole thing. You try bringing Enron to a jury trial. I mean, it's just very, very complicated. The investigators themselves have a hard time understanding it. And then you've got to convey to a jury of peers that this was criminal behavior and this person needs to go to jail, very complicated.
KAGAN: Quickly, quickly, the FBI I understand took Martha Stewart's mug shots yesterday?
SERWER: Yes, I mean...
KAGAN: Where are the pictures? Weve got to see this.
SERWER: Where are the pics? I mean, this is the problem. I mean, this is the special treatment thing again. Apparently she was whisked into a building here in the city, and they took mug shots. The mug shots are not available. Apparently this is uncommon. Usually you can get these things.
HEMMER: It's public record.
KAGAN: Yes.
SERWER: A public matter, a public record. I would imagine at some point we will see these pictures and, of course, they will be fodder, fodder, fodder.
HEMMER: Yes, I bet they will.
KAGAN: You'll see them on the late-night shows. That's where you'll see them.
SERWER: Yes.
HEMMER: See you next hour.
SERWER: OK, see you later.
KAGAN: Thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
