Peter E. Bacanovic worked for Martha Stewart as her stockbroker, shared her social orbit and once even appeared in her magazine wearing a bathrobe. On the first day of their criminal trial, the two greeted each other with kisses. What happens today in court could determine whether they remain so friendly.
Under Mr. Morvillo’s initial questioning this morning, Mr. Faneuil testified that he did not think he was doing anything wrong when he gave Ms. Stewart a tip that led her to sell her stock in 2001.
Mr. Faneuil testified last week that Mr. Bacanovic had ordered him to tell Ms. Stewart that the founder of ImClone Systems, Samuel D. Waksal, was trying to sell his shares in the company.
Mr. Morvillo wants to distance Ms. Stewart from conversations between Mr. Faneuil and Mr. Bacanovic.
In questioning this morning, Mr. Morvillo asked Mr. Faneuil if he thought he was doing something wrong by tipping off Ms. Stewart. Mr. Faneuil responded that he had a suspicion that there was insider trading going on because Mr. Waksal was trying to sell his shares, but, he added, “I would say because Peter was telling me to do it, I did not think I was doing anything wrong.”
Mr. Morvillo also asked Mr. Faneuil if, in the course of the telephone conversation with Ms. Stewart, he had told her that he thought he should not be giving her the information about the Waksal family’s stock sale. “No, I did not,” Mr. Faneuil replied.
Asked if he told Ms. Stewart to keep the information confidential, Mr. Faneuil responded, “No, I did not.”
Interviewed before Mr. Morvillo’s cross-examination of Mr. Faneuil, Thomas Ross, a law professor at the University of Pittsburgh, said, “This is Martha Stewart’s lawyer and the focus would be, `What do you specifically know about Martha Stewart?’ ” Mr. Faneuil, he added, “works for Bacanovic but his contacts with Martha Stewart were quite limited.”