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American Morning
Martha Stewart Trial
Aired February 03, 2004 - 08:14 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 City, some pivotal testimony expected today in Martha Stewart's trial. The prosecution's star witness, who was scheduled to testify about a week ago, expected to take the stand today.
And Deborah Feyerick is outside the courthouse in lower Manhattan -- Deb, good morning.
DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Bill.
Well, Douglas Faneuil really emerges as the point person, the guy at the center of it all, who, on the day between Christmas and new year's, was handling calls from Martha Stewart for his boss, broker Peter Bacanovic, also on trial, and from the CEO of ImClone, Sam Waksal.
The defense is going to try to portray him as a wannabe broker who was in over his head. The prosecutors say he's the guy who knows what really happened.
(BEGIN VIDEO CLIP)
FEYERICK (voice-over): Just six days after Martha Stewart's controversial ImClone sale, Merrill Lynch investigators questioned the young assistant broker who handled Stewart's trades that day. Stewart's regular broker was on vacation at the time, working long distance through his assistant. But Douglas Faneuil was not unlicensed to make any trades. A Merrill Lynch manager testifying Faneuil said he didn't know he needed to pass what's called a Series 63.
The manager testified Faneuil was not reprimanded but was told to get his license right away. Soon after, Faneuil was questioned by his company's investigators, telling him the ImClone sale was part of what he called tax law selling. The manager, Julia Monaghan, said she noticed a change in Faneuil's demeanor. Faneuil, she testified, seemed very nervous, jumpy, drained, stressed out.
So she suggested Faneuil take a firm to dinner at the firm's expense, writing it off as idea sharing. Several days later, Faneuil returned to his same manager, saying he had thought about it over the weekend and wanted to take the firm up on its offer to get him outside legal help. Monaghan testified, Faneuil continued to be stressed out, with a worried look, real jumpy and nervous. Monaghan suggested Faneuil take time off, an extra week, paid.
(END VIDEO CLIP) FEYERICK: It wasn't until about six months later that Faneuil changed the story he had been telling investigators. Faneuil cut a deal with prosecutors, saying that he had lied, that there had been no tax loss plan in place, as Stewart and Bacanovic maintain -- Bill.
HEMMER: Deborah Feyerick, thanks, here in New York City.
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 3, 2004 - 08:14 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 City, some pivotal testimony expected today in Martha Stewart's trial. The prosecution's star witness, who was scheduled to testify about a week ago, expected to take the stand today.
And Deborah Feyerick is outside the courthouse in lower Manhattan -- Deb, good morning.
DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Bill.
Well, Douglas Faneuil really emerges as the point person, the guy at the center of it all, who, on the day between Christmas and new year's, was handling calls from Martha Stewart for his boss, broker Peter Bacanovic, also on trial, and from the CEO of ImClone, Sam Waksal.
The defense is going to try to portray him as a wannabe broker who was in over his head. The prosecutors say he's the guy who knows what really happened.
(BEGIN VIDEO CLIP)
FEYERICK (voice-over): Just six days after Martha Stewart's controversial ImClone sale, Merrill Lynch investigators questioned the young assistant broker who handled Stewart's trades that day. Stewart's regular broker was on vacation at the time, working long distance through his assistant. But Douglas Faneuil was not unlicensed to make any trades. A Merrill Lynch manager testifying Faneuil said he didn't know he needed to pass what's called a Series 63.
The manager testified Faneuil was not reprimanded but was told to get his license right away. Soon after, Faneuil was questioned by his company's investigators, telling him the ImClone sale was part of what he called tax law selling. The manager, Julia Monaghan, said she noticed a change in Faneuil's demeanor. Faneuil, she testified, seemed very nervous, jumpy, drained, stressed out.
So she suggested Faneuil take a firm to dinner at the firm's expense, writing it off as idea sharing. Several days later, Faneuil returned to his same manager, saying he had thought about it over the weekend and wanted to take the firm up on its offer to get him outside legal help. Monaghan testified, Faneuil continued to be stressed out, with a worried look, real jumpy and nervous. Monaghan suggested Faneuil take time off, an extra week, paid.
(END VIDEO CLIP) FEYERICK: It wasn't until about six months later that Faneuil changed the story he had been telling investigators. Faneuil cut a deal with prosecutors, saying that he had lied, that there had been no tax loss plan in place, as Stewart and Bacanovic maintain -- Bill.
HEMMER: Deborah Feyerick, thanks, here in New York City.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
