Posts que contém a Tag ImClone Systems




ImClone Systems

Former CEO Samuel Waksal, who was arrested June 12 on insider trading charges, pleaded guilty on Oct. 16 to bank fraud and conspiracy in a scandal that has engulfed Martha Stewart and her home decorating empire. Waksal allegedly passed on information to family members and friends — including Stewart — that the Food and Drug Administration would not review his company’s experimental cancer drug, Erbitux. ImClone’s shares fell sharply when the FDA news became public. Waksal did not implicate Martha Stewart in his plea.

The Justice Department is investigating whether Stewart lied to lawmakers about her sale of nearly 4,000 ImClone shares on Dec. 27, a day before the FDA’s announcement. Stewart says she had a standing order to sell the shares if the stock dropped below $60. Prior to Waksal’s plea, an assistant to Stewart’s Merrill Lynch stock broker pleaded guilty to a misdemeanor charge and agreed to testify against people charged in the case.

Waksal, 55, could be sentenced to 65 years in prison and made to pay millions of dollars in fines. The bank fraud charge, which carries the most severe penalties, stemmed from Waksal’s forging the name of am ImClone lawyer to a document securing a line of credit. The biotech firm is being investigated by a congressional committee, which is seeking to find out if ImClone correctly informed investors that the Food and Drug Administration had declined to accept for review its key experimental cancer drug, Erbitux.

Former CEO Samuel Waksal was arrested June 12 on insider trading charges related to Erbitux. The indictment, filed on Aug. 7 in federal court, charges him with obstruction of justice and bank fraud in addition to previous securities fraud and perjury charges.

Also, federal investigators are looking into whether home decorating diva Martha Stewart used insider information about the cancer drug when she sold 4,000 ImClone shares one day before the FDA said it would reject the drug. Federal investigators are negotiating with a Merrill Lynch & Co. trading assistant in which he could receive immunity from prosecution in exchange for testimony against Stewart.

Data de publicação: 13/12/2002
Fonte/Autor: Reuters