A federal judge today sentenced former ImClone Systems Inc. Chief Executive Samuel Waksal to more than seven years in prison, after pleading guilty to securities fraud, bank fraud, perjury and other charges in an insider trading scheme, admitting that he tipped off relatives in late 2001 to sell ImClone shares before disclosure of a setback for a key cancer drug.
The news that he tried to sell his ImClone shares, and had advised his daughter to do the same, are at the center of the criminal and civil cases filed last week against domestic titan and Waksal friend Martha Stewart.
The government alleges Stewart sold her own ImClone shares after her broker’s assistant told her of the Waksals’ actions, and tried to cover up the circumstances. Although Waksal did not implicate Stewart, some experts said his sentence in fact increases the pressure on her. . . .