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Martha's broker sends records
Domestic diva's broker answers congressional subpoena, delivers records of his phone calls.
July 15, 2002: 5:37 PM EDT

NEW YORK (CNN/Money) - The personal phone and cell phone records of Peter Bacanovic, Martha Stewart's broker, were delivered to congressional investigators, his attorney told CNN/Money Monday.

The House Energy and Commerce Committee probing Stewart's sale of ImClone Systems Inc. stock set a noon ET Monday deadline for Bacanovic to send the records or face contempt of Congress charges. Records for the month of December were sent to investigators, attorney Richard Strassberg said, and a person close to the congressional investigation confirmed the panel has received them.

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The House committee is investigating whether Stewart had inside information when she sold her nearly 4,000 shares a day before the Food and Drug Administration rejected ImClone's application for its cancer drug.

Stewart repeatedly has defended herself, saying she had an existing verbal agreement with Bacanovic, a Merrill Lynch stock broker, to sell her ImClone shares if the price dipped below $60. Congressional investigators have been unable to find evidence of such an agreement.

And Bacanovic's assistant, Douglas Faneuil, reportedly told investigators he had no knowledge of any stop-loss order when he executed the sale.

Stewart has not been charged with any wrongdoing. Bacanovic, who is on paid leave from Merrill Lynch, has yet to speak to congressional investigators. "The fact that we had to subpoena his phone records tells you he's not cooperating," Rep. Billy Tauzin, R-La., who chairs the House Energy and Commerce Committee, said at a press conference Monday.

Federal prosecutors were granted an extension Friday of their deadline to indict ImClone's former CEO, Samuel Waksal. He was charged last month with trying to sell the company's stock and tipping off family members to sell theirs after he learned that regulators would reject ImClone's application. Waksal is holding plea negotiations with federal prosecutors and may plead guilty to insider trading-related charges to protect others in his family from being indicted in the case, a person familiar with the situation has told CNN/Money.

A spokeswoman for Martha Stewart could not be reached for comment.  Top of page






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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.