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Evidence allowed against ex-broker
Judge rules on key evidence as jurors deliberate for a third day in the Martha Stewart trial.
March 5, 2004: 1:09 PM EST

NEW YORK (CNN/Money) - The judge in the Martha Stewart trial -- in a technical ruling that was a blow to Stewart's ex-broker Peter Bacanovic -- ruled Friday that jurors can consider a telephone log plus the testimony of a witness in deciding if Bacanovic committed perjury.

Under federal law, finding someone guilty of perjury requires the testimony of two witnesses. The jury had asked Judge Miriam Goldman Cedarbaum if a phone log kept by Stewart's assistant, Ann Armstrong, is independent of her testimony at the trial.

The judge ruled before the start of deliberations that the answer was yes. Considering her log independently makes it in effect a second witness and would allow the jury to consider whether to convict Bacanovic on Count 6 of the indictment, which accuses him of perjury.

The jurors, whom the judge called"extremely intelligent and probative," also had requested the transcripts of testimony from an investigator for the Security and Exchange Commission concerning interviews with Bacanovic and e-mails between the former broker and Stewart and Stewart's business manager, Heidi DeLuca.

The panel of eight women and four men began weighing the evidence Wednesday afternoon as they sought to determine if Stewart and her ex-broker lied about her sale of ImClone Systems Inc. (IMCL: Research, Estimates) stock in late 2001.

Stewart and Bacanovic are charged with lying to investigators about the circumstances surrounding Stewart's stock sale on Dec. 27, 2001, the day before regulators rejected the company's application for ImClone's experimental cancer drug -- news that sent its stock tumbling.

The prosecution alleges Stewart sold her ImClone stock only after Bacanovic told his assistant, Douglas Faneuil, to tip her off that ImClone founder Sam Waksal was trying to sell.

Stewart and Bacanovic have told investigators they had an arrangement to sell once the stock fell to $60.

Bacanovic was broker to both Stewart and Waksal, who is serving a seven-year prison term after pleading guilty to securities fraud over his family's sale of ImClone shares.

Last week, Judge Cedarbaum dismissed a securities fraud charge against the 62-year-old Stewart. The four remaining charges she faces, and the five faced by Bacanovic, each carry a possible sentence of up to five years.  Top of page


-- from CNNfn's Allan Chernoff and staff and wire reports




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.