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American Morning
Martha Stewart Trial
Aired January 29, 2004 - 07:38 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.
SOLEDAD O'BRIEN, CNN ANCHOR: The government's star witness is expected to take the stand today when the Martha Stewart trial resumes.
Deborah Feyerick is covering the trial, and she is live outside the courthouse here in New York City.
Good morning to you -- Deborah.
DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Soledad.
Well, something that could help the defense. Martha Stewart's lawyers have gained access to notes taken between the government's star witness, Doug Faneuil, and his first lawyer. The judge sided with the argument that they lost their privileged confidential status after Faneuil cut a deal with the government. These are notes that Martha Stewart's team is likely to use to hurt Faneuil's credibility.
(BEGIN VIDEOTAPE)
FEYERICK (voice-over): The morning of December 27, Doug Faneuil, an assistant broker at Merrill Lynch, was inundated with phone calls. ImClone owner Sam Waksal and his daughter, Eliza (ph), wanted to sell their stock. As prosecutors describe it, they wanted to sell 7.5 million worth, every last share.
Martha Stewart's broker, Peter Bacanovic, was vacationing in Florida. Prosecutors say when Faneuil told him what was going on, they tried reaching Stewart, who was heading to Mexico on vacation.
When she called back around lunch, prosecutors say Fanueil told Stewart what was happening. Stewart allegedly responding, "The Waksal's are trying to sell all of their shares?" Faneuil answering, "All of their shares."
Prosecutors say Fanuiel will testify he passed on the information; then sold Stewart's 4,000 ImClone shares.
But Stewart's lawyer argues her broker had been urging her for months to sell ImClone, and that it was on a list of other underperforming stocks Stewart planned to sell by the end of the year.
Defense lawyers say Stewart had agreed to sell if it fell be low $60, telling the jury she's on her way to vacation., she doesn't want to be bothered by this anymore, and she finally says go ahead and sell it. Faneuil was on vacation December 21, the day defense lawyers say Stewart and her broker charted a year-end strategy to offset taxes on a huge $45 million windfall. Bacanovic's lawyer warned jurors to scrutinize Faneuil's testimony, saying Fanueil was fixated on Martha Stewart, that he lied, then blamed it on his boss. Bacanovic's lawyer saying Peter Bacanovic never told Doug Faneuil to lie. Even Mr. Faneuil admits it.
(END VIDEOTAPE)
Bacanovic's lawyer made it very clear to the jury that Faneuil cut a deal with prosecutors, that in exchange for testifying he was not charged with the felony of lying, but a misdemeanor of withholding information from the government -- Soledad.
O'BRIEN: We'll hear what he has to say, right, Deborah? Deborah Feyerick joining us this morning. 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 January 29, 2004 - 07:38 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: The government's star witness is expected to take the stand today when the Martha Stewart trial resumes.
Deborah Feyerick is covering the trial, and she is live outside the courthouse here in New York City.
Good morning to you -- Deborah.
DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Soledad.
Well, something that could help the defense. Martha Stewart's lawyers have gained access to notes taken between the government's star witness, Doug Faneuil, and his first lawyer. The judge sided with the argument that they lost their privileged confidential status after Faneuil cut a deal with the government. These are notes that Martha Stewart's team is likely to use to hurt Faneuil's credibility.
(BEGIN VIDEOTAPE)
FEYERICK (voice-over): The morning of December 27, Doug Faneuil, an assistant broker at Merrill Lynch, was inundated with phone calls. ImClone owner Sam Waksal and his daughter, Eliza (ph), wanted to sell their stock. As prosecutors describe it, they wanted to sell 7.5 million worth, every last share.
Martha Stewart's broker, Peter Bacanovic, was vacationing in Florida. Prosecutors say when Faneuil told him what was going on, they tried reaching Stewart, who was heading to Mexico on vacation.
When she called back around lunch, prosecutors say Fanueil told Stewart what was happening. Stewart allegedly responding, "The Waksal's are trying to sell all of their shares?" Faneuil answering, "All of their shares."
Prosecutors say Fanuiel will testify he passed on the information; then sold Stewart's 4,000 ImClone shares.
But Stewart's lawyer argues her broker had been urging her for months to sell ImClone, and that it was on a list of other underperforming stocks Stewart planned to sell by the end of the year.
Defense lawyers say Stewart had agreed to sell if it fell be low $60, telling the jury she's on her way to vacation., she doesn't want to be bothered by this anymore, and she finally says go ahead and sell it. Faneuil was on vacation December 21, the day defense lawyers say Stewart and her broker charted a year-end strategy to offset taxes on a huge $45 million windfall. Bacanovic's lawyer warned jurors to scrutinize Faneuil's testimony, saying Fanueil was fixated on Martha Stewart, that he lied, then blamed it on his boss. Bacanovic's lawyer saying Peter Bacanovic never told Doug Faneuil to lie. Even Mr. Faneuil admits it.
(END VIDEOTAPE)
Bacanovic's lawyer made it very clear to the jury that Faneuil cut a deal with prosecutors, that in exchange for testifying he was not charged with the felony of lying, but a misdemeanor of withholding information from the government -- Soledad.
O'BRIEN: We'll hear what he has to say, right, Deborah? Deborah Feyerick joining us this morning. 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.
