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American Morning

Martha Stewart Trial

Aired February 18, 2004 - 09:17   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: Martha Stewart expected back in federal court in lower Manhattan in a few moments from now. Prosecutors in the trial of Stewart and her former broker Peter Bacanovic are moving toward the end of their case. In rulings yesterday, one win, one loss for the prosecution.
Jeff Toobin is outside the courthouse and joins us live in lower Manhattan.

Good morning, Jeff, to you.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Hi, Bill.

HEMMER: Let's start with these phone records the judge says will not be allowed between Stewart and Bacanovic. How important is that ruling in favor of the defense at this point?

TOOBIN: I would say both of the rulings today were sort of modestly important. The ruling about the phone records is there are several records of phone calls associated with Peter Baconovic to numbers associated with Martha Stewart. Of course, the prosecution doesn't know what was said in those calls, only that these calls existed, and the judge is saying, in a couple of these circumstances, we're not going to allow the jury to hear these phone calls took place, because there is no way to know who is actually speaking, much less what they said.

HEMMER: What were the prosecutors trying to show in those conversations?

TOOBIN: Well, one of them, for example, January 7th, was right before Martha Stewart gave her first -- I'm sorry, before Peter Bacanovic gave his first interview to government investigators. So the government's implication was, in this 22 minute phone call, Martha Stewart and Peter Bacanovic were lining up their stories.

But Martha Stewart was apparently in transit back from Panama that day. There is no guarantee that the 22-minute phone call was actually between Bacanovic and Martha Stewart. so the judge said, no, I'm not going to allow it at all. That's the idea behind the call.

HEMMER: I take it from your first answer, Jeff, you don't see this as much of a blow to the prosecution's case, do you?

TOOBIN: You know, they certainly would have rather won this. But you know, I just think this case is really about whether the jury believes that Martha Stewart lied, and that is going to go based on the documentary evidence, based on Douglas Faneuil, Peter Bacanovic's former assistant, Annie Armstrong, her secretary's testimony. You know, it's easy to get caught up in these legal rulings, but I think the testimony matters a lot more.

HEMMER: You mentioned Faneuil. Apparently, there's another ruling handed down, Jeff, that seems to indicate the conversations he with other people will be admitted into evidence. Judge Sederbaum (ph) ruled yesterday, or this is what she said anyway, in part, I'm quoting: "I think the government is entitled to show he told one friend, if not two, that he had done something wrong and he had been asked to do it." What is the impact of that, if admitted, those conversations, in court?

TOOBIN: I think that's a significant win for prosecutors, because it's important corroboration of Faneuil. If the jury believes Faneuil's testimony, Bacanovic is guilty, period. As for Martha Stewart, his testimony is less directly incriminating, but he's still an important witness. So to the extent the government can pack him up -- and it appears they will be able to back him up with these corroborating witnesses, probably today -- that's a good thing for the prosecution.

HEMMER: Is this borderline hearsay, with Faneuil?

TOOBIN: It is hearsay, but it's what's called a prior consistent statement, which is an exception to the hearsay rule, and that's why the judge is letting it in.

HEMMER: All right. And that's why you're our guy. Thanks, Jeff, Jeff Toobin, in lower Manhattan.

TOOBIN: All right, see you later.

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 18, 2004 - 09:17   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Martha Stewart expected back in federal court in lower Manhattan in a few moments from now. Prosecutors in the trial of Stewart and her former broker Peter Bacanovic are moving toward the end of their case. In rulings yesterday, one win, one loss for the prosecution.
Jeff Toobin is outside the courthouse and joins us live in lower Manhattan.

Good morning, Jeff, to you.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Hi, Bill.

HEMMER: Let's start with these phone records the judge says will not be allowed between Stewart and Bacanovic. How important is that ruling in favor of the defense at this point?

TOOBIN: I would say both of the rulings today were sort of modestly important. The ruling about the phone records is there are several records of phone calls associated with Peter Baconovic to numbers associated with Martha Stewart. Of course, the prosecution doesn't know what was said in those calls, only that these calls existed, and the judge is saying, in a couple of these circumstances, we're not going to allow the jury to hear these phone calls took place, because there is no way to know who is actually speaking, much less what they said.

HEMMER: What were the prosecutors trying to show in those conversations?

TOOBIN: Well, one of them, for example, January 7th, was right before Martha Stewart gave her first -- I'm sorry, before Peter Bacanovic gave his first interview to government investigators. So the government's implication was, in this 22 minute phone call, Martha Stewart and Peter Bacanovic were lining up their stories.

But Martha Stewart was apparently in transit back from Panama that day. There is no guarantee that the 22-minute phone call was actually between Bacanovic and Martha Stewart. so the judge said, no, I'm not going to allow it at all. That's the idea behind the call.

HEMMER: I take it from your first answer, Jeff, you don't see this as much of a blow to the prosecution's case, do you?

TOOBIN: You know, they certainly would have rather won this. But you know, I just think this case is really about whether the jury believes that Martha Stewart lied, and that is going to go based on the documentary evidence, based on Douglas Faneuil, Peter Bacanovic's former assistant, Annie Armstrong, her secretary's testimony. You know, it's easy to get caught up in these legal rulings, but I think the testimony matters a lot more.

HEMMER: You mentioned Faneuil. Apparently, there's another ruling handed down, Jeff, that seems to indicate the conversations he with other people will be admitted into evidence. Judge Sederbaum (ph) ruled yesterday, or this is what she said anyway, in part, I'm quoting: "I think the government is entitled to show he told one friend, if not two, that he had done something wrong and he had been asked to do it." What is the impact of that, if admitted, those conversations, in court?

TOOBIN: I think that's a significant win for prosecutors, because it's important corroboration of Faneuil. If the jury believes Faneuil's testimony, Bacanovic is guilty, period. As for Martha Stewart, his testimony is less directly incriminating, but he's still an important witness. So to the extent the government can pack him up -- and it appears they will be able to back him up with these corroborating witnesses, probably today -- that's a good thing for the prosecution.

HEMMER: Is this borderline hearsay, with Faneuil?

TOOBIN: It is hearsay, but it's what's called a prior consistent statement, which is an exception to the hearsay rule, and that's why the judge is letting it in.

HEMMER: All right. And that's why you're our guy. Thanks, Jeff, Jeff Toobin, in lower Manhattan.

TOOBIN: All right, see you later.

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