Titlephoto

BAF3M1 - Martha Stewart Scandal

By DLC
  • Period: to

    Marth Stewart Scandal

  • ImClone Systems asks the government to review Erbitux, its new cancer drug.

    Erbitux was a new creation as a cancer curing drug, it was impending of approval by the FDR(food and drug administration)

  • ImClone founder Sam Waksal is tipped that the government will deny the company's Erbitux application

    The government failed to find a reason to allow the new Erbitux cancer curing drug to go on store shelfs. FDA denied the application,

  • ImClone founder Sam Waksal, tips family and friends to sell all their stocks invested

    His daughter, Aliza Waksal, sold $2.5 million in shares on December 28. His father, Jack Waksal, sold $8.1 million in shares over the 28th and 29th;

  • Martha Stewart sells all 3,928 shares of ImClone stock she owns.

    Stewart sold about $230,000 in ImClone shares on December 28, 2001, a day before the announcement of the FDA decision.

  • The FDA makes its decision public

    FDA made the decision to tell the public that Erbitux will not be sold publicly

  • IMClone Stock drops

    First day the market was open after hearing the erbitux decision, the stock dropped a total of 18%

  • Martha Stewerts Broker makes a statment

    Stewart's broker, Peter Bacanovic, tells Securities and Exchange Commission attorneys that he and Stewart had agreed on Dec. 20, 2001, to sell ImClone if it the stock price fell below $60.

  • Martha Stewert was under qeustion from federal prosecutors and the FBI

    Stewart gives the SEC, federal prosecutors and the FBI the same information about the $60 stop-loss order. The deal she made with her broker on Dec 20, 2001

  • Sam Waksal is arrested and charged with insider trading

    After this MArtha Stewart issues a statement repeating her assertion that she had a $60 stop-loss order

  • Stewart insists she is "fully" cooperating with authorities.

    Martha claims she is following in order to the stock market and insist she was not invovled in any illagal trading.

  • Douglas Faneuil pleads guilty to taking a payoff from Martha Stewert

    Former Merrill Lynch & Co. assistant Douglas Faneuil pleads guilty to taking a payoff to keep quiet about the Stewart stock trade.

  • Waksal admits tipping family and friends

    Waksal admits tipping his daughterand father to sell ImClone ahead of the government decision and trying to sell his own shares.

  • Stewart and Bacanovic are indicted on nine federal counts

    Both plead innocent. Stewart resigns as chairwoman and CEO of her company but remains chief creative officer and a board member.

  • Stewart unveils a personal Web site

    Which she proclaims her innocence and insists she will fight to clear her name.

  • Waksal is sentenced

    Sam Waksal is sentenced to seven years in prision for insider trading

  • Stewart's famous ABC interveiw

    Stewart tells ABC News she is scared of prison but "I don't think I will be going to prison, though."

  • U.S. District Judge Miriam Goldman Cedarbaum refuses Stewarts reqeust

    Miriam Goldman Cedarbaum refuses Stewart's request to toss out two of the five charges against her, including a securities fraud count.

  • Jury of eight women and four men is selected.

    Jurors fill out a questionnaire that reportedly asks whether they have visited Stewart's Web site or cooked with her recipes.

  • Prosecutor claims in opening statements that Stewart sold ImClone stock based on a "secret tip,"

    Then lied to cover it up. Stewart's attorney compares case with the Big Brother novel "1984."

  • Bacanovic saying he never discussed $60 plan with Stewart

    Judge throws out securities fraud count against Stewart. The charge accused her of deceiving investors in her own media company by claiming she sold ImClone because of the $60 agreement

  • Stewart convicted on all charges; Bacanovic convicted on all but one charge, making a false statement.

    Stewert ended up with 6 months in jail and 2 years of parole.