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Munku · 03-05-2004, 01:05 PM

http://money.cnn.com/2004/03/05/news...ex.htm?cnn=yes

NEW YORK (CNN/Money) - A jury found Martha Stewart guilty on all four counts against her in her obstruction of justice trial Friday and is expected to serve prison time.

Her ex-broker Peter Bacanovic was found guilty on four of the five charges he faced.

Neither defendant appeared to show any emotion when the verdict was read, though the lead prosecutor appeared to be holding back tears of joy.

Sentencing was set for June 17.

The jury deliberated for three days after a five-week trial.

The panel of eight women and four men began deliberating Wednesday on whether Stewart and her ex-broker, Peter Bacanovic, obstructed justice and lied to the government about her sale of ImClone stock in December 2001.

Stewart, 62, was found guilty of conspiracy, obstruction of justice and two counts of making false statements – charges that together carry a penalty of up to 20 years in prison.

Bacanovic, 41, was convicted of making false statements, conspiracy, perjury and obstruction of justice – with a maximum prison term of 25 years. He was acquitted on a charge of making and using of false documents.

Both Stewart and Bacanovic left the courthouse without speaking to reporters. Eyewitnesses said Stewart's daughter Alexis was crying.

Stewart said on her Web site that she would appeal.

But the homemaker turned style setter and media executive could still do jail time.

"Unless this is somehow undone on appeal, she's a felon and she's going to prison," legal analyst Kendall Coffey said.

Prosecutors argued that Stewart sold her ImClone stock only after Bacanovic told his assistant to tip her off that ImClone founder Sam Waksal was trying to sell. Stewart and Bacanovic had told investigators they had an arrangement to sell once the stock fell to $60.

Bacanovic was broker to both Stewart and Waksal, who is serving a seven-year prison term after pleading guilty to securities fraud over his family's sale of ImClone shares.

Bacanovic's former assistant, Douglas Faneuil, the government's star witness in the case, testified that his boss ordered him to pass an inside tip about ImClone to Stewart.

Despite the intense publicity surrounding the trial – the most closely watched of the recent corporate fraud cases – the stock trade at its center involved a relatively small amount of money.

03-05-2004, 01:05 PM	#1 (permalink)
Munku Lost Location: Florida	Martha Guilty on all 4 counts... http://money.cnn.com/2004/03/05/news...ex.htm?cnn=yes NEW YORK (CNN/Money) - A jury found Martha Stewart guilty on all four counts against her in her obstruction of justice trial Friday and is expected to serve prison time. Her ex-broker Peter Bacanovic was found guilty on four of the five charges he faced. Neither defendant appeared to show any emotion when the verdict was read, though the lead prosecutor appeared to be holding back tears of joy. Sentencing was set for June 17. The jury deliberated for three days after a five-week trial. The panel of eight women and four men began deliberating Wednesday on whether Stewart and her ex-broker, Peter Bacanovic, obstructed justice and lied to the government about her sale of ImClone stock in December 2001. Stewart, 62, was found guilty of conspiracy, obstruction of justice and two counts of making false statements – charges that together carry a penalty of up to 20 years in prison. Bacanovic, 41, was convicted of making false statements, conspiracy, perjury and obstruction of justice – with a maximum prison term of 25 years. He was acquitted on a charge of making and using of false documents. Both Stewart and Bacanovic left the courthouse without speaking to reporters. Eyewitnesses said Stewart's daughter Alexis was crying. Stewart said on her Web site that she would appeal. But the homemaker turned style setter and media executive could still do jail time. "Unless this is somehow undone on appeal, she's a felon and she's going to prison," legal analyst Kendall Coffey said. Prosecutors argued that Stewart sold her ImClone stock only after Bacanovic told his assistant to tip her off that ImClone founder Sam Waksal was trying to sell. Stewart and Bacanovic had told investigators they had an arrangement to sell once the stock fell to $60. Bacanovic was broker to both Stewart and Waksal, who is serving a seven-year prison term after pleading guilty to securities fraud over his family's sale of ImClone shares. Bacanovic's former assistant, Douglas Faneuil, the government's star witness in the case, testified that his boss ordered him to pass an inside tip about ImClone to Stewart. Despite the intense publicity surrounding the trial – the most closely watched of the recent corporate fraud cases – the stock trade at its center involved a relatively small amount of money.