Return to Transcripts main page

American Morning

Martha Stewart Case

Aired February 10, 2004 - 07:43   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 prosecution's star witness in the Martha Stewart trial is finished testifying. Douglas Faneuil spent four days on the stand. Were defense lawyers able to put a dent in his credibility?
CNN senior analyst Jeffrey Toobin back with us today, in the courtroom again yesterday, where you've been for, what? The past week and a half?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: A couple of weeks, yes.

HEMMER: I'm going to try and get comfortable here.

Did they poke holes in his story? Yes or no?

TOOBIN: You know, not very many. He was an extremely good witness. If the defense case relies on the jury thinking that Douglas Faneuil is some sort of liar, I think they are in big trouble. I think Martha Stewart did make some points in saying that Faneuil simply didn't know what he thought he knew, that he asserted that there was a cover-up here, he asserted that Martha Stewart -- you know, he knew why Martha Stewart was selling the stock.

In fact, there was a lot Faneuil didn't know about Martha's finances. That's very helpful to Martha -- simply that Faneuil is ignorant of things. But was he lying? I don't think they'll be able to prove that.

HEMMER: One of the things he said on the stand in reference to Peter Bacanovic, the thing I've always been the most scared of was being up here on this stand and having to tell the truth in a trial in which I knew Peter was lying.

There is talk now about splitting the co-defendants, putting more distance between them. You believe he has done more damage to Bacanovic than he has to Stewart.

TOOBIN: Much, much more. I mean, Bacanovic was really devastated by this testimony. And Morvillo, who is Martha Stewart's lawyer, really sort of threw Bacanovic over the side yesterday. He was -- in his cross-examination he kept saying to Faneuil, you know, it was Bacanovic who told you to lie, right? It was Bacanovic who obstructed justice. Martha Stewart never obstructed justice, did she? And Faneuil agreed with all of those statements. A very clear split between the two defendants yesterday. HEMMER: At the end of the day, in fact, court was called early. The assistant for Martha Stewart literally broke down, very emotional testimony. What was the reaction?

TOOBIN: (UNINTELLIGIBLE) I'll tell you. Well, you know, Ann Armstrong, her long-time assistant, was talking about December 27, the day of the stock trade. And she said that, you know, morning, Martha called, and I thanked her for the plum pudding she had sent home. And she just burst into tears. She just was so overwrought, because she -- you know, we've heard a lot about what a terrible boss Martha Stewart is during this trial. But Ann Armstrong obviously feels a great deal of affection for her. And it was very real moment that, you know, testifying in this way affected Armstrong a great deal, and she couldn't continue.

(CROSSTALK)

HEMMER: But it affected Stewart as well, correct?

TOOBIN: Stewart seemed to be brushing a tear away from her eye as well, because, you know, this was obviously something that affected Armstrong a lot. However, Armstrong has some very devastating testimony that she's going to deliver today, and that's probably another reason why she was crying.

HEMMER: See you later, OK?

TOOBIN: I can't wait.

HEMMER: See you tomorrow.

TOOBIN: This is such a good trial.

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 10, 2004 - 07:43   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: The prosecution's star witness in the Martha Stewart trial is finished testifying. Douglas Faneuil spent four days on the stand. Were defense lawyers able to put a dent in his credibility?
CNN senior analyst Jeffrey Toobin back with us today, in the courtroom again yesterday, where you've been for, what? The past week and a half?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: A couple of weeks, yes.

HEMMER: I'm going to try and get comfortable here.

Did they poke holes in his story? Yes or no?

TOOBIN: You know, not very many. He was an extremely good witness. If the defense case relies on the jury thinking that Douglas Faneuil is some sort of liar, I think they are in big trouble. I think Martha Stewart did make some points in saying that Faneuil simply didn't know what he thought he knew, that he asserted that there was a cover-up here, he asserted that Martha Stewart -- you know, he knew why Martha Stewart was selling the stock.

In fact, there was a lot Faneuil didn't know about Martha's finances. That's very helpful to Martha -- simply that Faneuil is ignorant of things. But was he lying? I don't think they'll be able to prove that.

HEMMER: One of the things he said on the stand in reference to Peter Bacanovic, the thing I've always been the most scared of was being up here on this stand and having to tell the truth in a trial in which I knew Peter was lying.

There is talk now about splitting the co-defendants, putting more distance between them. You believe he has done more damage to Bacanovic than he has to Stewart.

TOOBIN: Much, much more. I mean, Bacanovic was really devastated by this testimony. And Morvillo, who is Martha Stewart's lawyer, really sort of threw Bacanovic over the side yesterday. He was -- in his cross-examination he kept saying to Faneuil, you know, it was Bacanovic who told you to lie, right? It was Bacanovic who obstructed justice. Martha Stewart never obstructed justice, did she? And Faneuil agreed with all of those statements. A very clear split between the two defendants yesterday. HEMMER: At the end of the day, in fact, court was called early. The assistant for Martha Stewart literally broke down, very emotional testimony. What was the reaction?

TOOBIN: (UNINTELLIGIBLE) I'll tell you. Well, you know, Ann Armstrong, her long-time assistant, was talking about December 27, the day of the stock trade. And she said that, you know, morning, Martha called, and I thanked her for the plum pudding she had sent home. And she just burst into tears. She just was so overwrought, because she -- you know, we've heard a lot about what a terrible boss Martha Stewart is during this trial. But Ann Armstrong obviously feels a great deal of affection for her. And it was very real moment that, you know, testifying in this way affected Armstrong a great deal, and she couldn't continue.

(CROSSTALK)

HEMMER: But it affected Stewart as well, correct?

TOOBIN: Stewart seemed to be brushing a tear away from her eye as well, because, you know, this was obviously something that affected Armstrong a lot. However, Armstrong has some very devastating testimony that she's going to deliver today, and that's probably another reason why she was crying.

HEMMER: See you later, OK?

TOOBIN: I can't wait.

HEMMER: See you tomorrow.

TOOBIN: This is such a good trial.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.