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CNN Sunday Morning

Legal Roundup

Aired October 06, 2002 - 11:39   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.


FREDRICKA WHITFIELD, CNN ANCHOR: Time now for our "Legal Roundup." And at least three of the cases this week involve high- profile women, from Rosie O'Donnell to Winona Ryder to Martha Stewart, and our guest to talk more about this, former U.S. Attorney Kendall Coffey. He is joining us from Miami. Good to see you, Kendall.
KENDALL COFFEY, FORMER U.S. ATTORNEY: Good morning, Fredricka.

WHITFIELD: All right, let's begin with Martha Stewart. It doesn't help her case at all that her assistant last week, Peter Bacanovic, would make a deal. Does this mean that he is likely to incriminate her, or at least he can?

COFFEY: Almost assuredly. He's got bad things to say that could lead to charges. The news last week was very troubling for Martha Stewart. Of course, she has now resigned her seat on the New York Stock Exchange, and obviously there's still more decisions to be made. There could be other cooperators that get into the mix, but right now it's looking very tough for Martha Stewart.

One of the questions is, does someone who is involved in this kind of insider trading routinely get prosecuted or is she being singled out, and the truth is, this kind of scheme probably happens a lot, where someone gets a hot tip from a broker of some non-public information. It isn't prosecuted all that often in relation to the amount of times it happens.

From the standpoint of her supporters, that means it's unfair. But, Fredricka, from the standpoint of the prosecutors, this is a chance to make a statement in a high-profile, high-decibel way that the crime of insider trading is a crime that doesn't pay.

WHITFIELD: So she could be used as that example, she is that perfect example of you don't want to do this?

COFFEY: For better or for bitter, when you're in the category of the rich and famous, one of the things you provide prosecutors, part of whose job is public message and deterrence, is an opportunity to send a message that could be remembered for years to come.

WHITFIELD: And then I understand even if they do not -- if she skates and doesn't, you know, is not found guilty of insider trading, then the government still could make a case of obstruction of justice, can't they?

COFFEY: And that's the other part of the dynamic. How many times, Fredricka, have we seen cases where the initial allegations may be weak, may be strong, not overwhelming, and then the big mistake, the cover-up. So part of what is also concerning prosecutors, part of what some people may think is the biggest source of her problem is the so-called obstruction, the false statement, the cover-up that occurred after the investigation began, allegedly.

WHITFIELD: All right, let's talk about Rosie O'Donnell now. Former talk show host and now former participant in a magazine. Her publishing company is suing her, and then she turns around and files a countersuit. How much is that going to help her case or add credence to the fact that she perhaps is making a good point, that her editorial powers were being taken away and so she felt like, I no longer want to be part of this project?

COFFEY: Well, it's exactly the right move from her standpoint, because she's got to get her side out of the story, and at this point, instead of somebody being wrong or somebody right, what you have is a crossfire of allegations, and she's doing a good job so far of getting her message out.

While both sides are saying they want to have their day in court, they want all the truth to get out, the reality is they are in the business of relying on public will, goodwill, whether you're a media company or whether you're Rosie O'Donnell, so this is the kind of case that doesn't really commend years of mud slinging and litigation. What it commends is an out-of-court settlement. Sooner is a lot better than later.

WHITFIELD: OK, quickly, Winona Ryder, beginning this week perhaps a trial, jury trial involving her alleged theft case. She's charged with possessing or trying -- attempting to steal $6,000 in merchandise from a department store last December. Is this the kind of case that usually has a jury trial?

COFFEY: This is the kind of case, Fredricka, that usually gets settled out of court, but for some reason that doesn't seem to be happening. And sometimes prosecutors are not all that kind and gentle where celebrities are involved. Sometimes they're going to charge very aggressively because they want to make a statement, here perhaps as the prosecutors may be doing with Martha Stewart.

Juries, on the other hand, sometimes if it's a well-regarded celebrity and it's not a crime of violence or something serious like that, might be more sympathetic. I wouldn't rule out a plea deal here at the last minute, but for now it looks like the defense is going to take their chances with the jury.

WHITFIELD: OK, quickly now, in the Barry Bonds case, who owns this 73rd home run ball? Is it the guy who caught it or is it the guy who ends up getting it in a quick little brawl in the stands? I can't believe this one, too, is potentially a jury case, jury trial.

COFFEY: Well, we know what King Solomon would have done. He'd cut the ball in half. I say if no one made a clean catch from the air, let the ball stay with its original owner, Major League Baseball, put it in the Hall of Fame and give the contestants a season's ticket. Don't think anyone is going to accept my advice, but this is one that I think ought to be won by the fans.

WHITFIELD: They might be listening. All right, thanks very much, Kendall Coffey, always good to see you.

COFFEY: Thanks, Fredricka. Great seeing 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 October 6, 2002 - 11:39   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Time now for our "Legal Roundup." And at least three of the cases this week involve high- profile women, from Rosie O'Donnell to Winona Ryder to Martha Stewart, and our guest to talk more about this, former U.S. Attorney Kendall Coffey. He is joining us from Miami. Good to see you, Kendall.
KENDALL COFFEY, FORMER U.S. ATTORNEY: Good morning, Fredricka.

WHITFIELD: All right, let's begin with Martha Stewart. It doesn't help her case at all that her assistant last week, Peter Bacanovic, would make a deal. Does this mean that he is likely to incriminate her, or at least he can?

COFFEY: Almost assuredly. He's got bad things to say that could lead to charges. The news last week was very troubling for Martha Stewart. Of course, she has now resigned her seat on the New York Stock Exchange, and obviously there's still more decisions to be made. There could be other cooperators that get into the mix, but right now it's looking very tough for Martha Stewart.

One of the questions is, does someone who is involved in this kind of insider trading routinely get prosecuted or is she being singled out, and the truth is, this kind of scheme probably happens a lot, where someone gets a hot tip from a broker of some non-public information. It isn't prosecuted all that often in relation to the amount of times it happens.

From the standpoint of her supporters, that means it's unfair. But, Fredricka, from the standpoint of the prosecutors, this is a chance to make a statement in a high-profile, high-decibel way that the crime of insider trading is a crime that doesn't pay.

WHITFIELD: So she could be used as that example, she is that perfect example of you don't want to do this?

COFFEY: For better or for bitter, when you're in the category of the rich and famous, one of the things you provide prosecutors, part of whose job is public message and deterrence, is an opportunity to send a message that could be remembered for years to come.

WHITFIELD: And then I understand even if they do not -- if she skates and doesn't, you know, is not found guilty of insider trading, then the government still could make a case of obstruction of justice, can't they?

COFFEY: And that's the other part of the dynamic. How many times, Fredricka, have we seen cases where the initial allegations may be weak, may be strong, not overwhelming, and then the big mistake, the cover-up. So part of what is also concerning prosecutors, part of what some people may think is the biggest source of her problem is the so-called obstruction, the false statement, the cover-up that occurred after the investigation began, allegedly.

WHITFIELD: All right, let's talk about Rosie O'Donnell now. Former talk show host and now former participant in a magazine. Her publishing company is suing her, and then she turns around and files a countersuit. How much is that going to help her case or add credence to the fact that she perhaps is making a good point, that her editorial powers were being taken away and so she felt like, I no longer want to be part of this project?

COFFEY: Well, it's exactly the right move from her standpoint, because she's got to get her side out of the story, and at this point, instead of somebody being wrong or somebody right, what you have is a crossfire of allegations, and she's doing a good job so far of getting her message out.

While both sides are saying they want to have their day in court, they want all the truth to get out, the reality is they are in the business of relying on public will, goodwill, whether you're a media company or whether you're Rosie O'Donnell, so this is the kind of case that doesn't really commend years of mud slinging and litigation. What it commends is an out-of-court settlement. Sooner is a lot better than later.

WHITFIELD: OK, quickly, Winona Ryder, beginning this week perhaps a trial, jury trial involving her alleged theft case. She's charged with possessing or trying -- attempting to steal $6,000 in merchandise from a department store last December. Is this the kind of case that usually has a jury trial?

COFFEY: This is the kind of case, Fredricka, that usually gets settled out of court, but for some reason that doesn't seem to be happening. And sometimes prosecutors are not all that kind and gentle where celebrities are involved. Sometimes they're going to charge very aggressively because they want to make a statement, here perhaps as the prosecutors may be doing with Martha Stewart.

Juries, on the other hand, sometimes if it's a well-regarded celebrity and it's not a crime of violence or something serious like that, might be more sympathetic. I wouldn't rule out a plea deal here at the last minute, but for now it looks like the defense is going to take their chances with the jury.

WHITFIELD: OK, quickly now, in the Barry Bonds case, who owns this 73rd home run ball? Is it the guy who caught it or is it the guy who ends up getting it in a quick little brawl in the stands? I can't believe this one, too, is potentially a jury case, jury trial.

COFFEY: Well, we know what King Solomon would have done. He'd cut the ball in half. I say if no one made a clean catch from the air, let the ball stay with its original owner, Major League Baseball, put it in the Hall of Fame and give the contestants a season's ticket. Don't think anyone is going to accept my advice, but this is one that I think ought to be won by the fans.

WHITFIELD: They might be listening. All right, thanks very much, Kendall Coffey, always good to see you.

COFFEY: Thanks, Fredricka. Great seeing 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