Gay stockbroker pleads guilty in ImClone scandal
BY Advocate.com Editors
October 03 2002 12:00 AM ET
Douglas Faneuil, an openly gay man who worked as an assistant to Martha Stewart's stockbroker, was expected to plead guilty Wednesday to a misdemeanor and cooperate in an investigation of Stewart and others in the ImClone Systems stock sales scandal. Prosecutors believe Faneuil was paid off to keep secret what he knew about insider information allegedly given to the domestic doyenne, who sold ImClone stock before bad news devalued its shares, according to court papers released Wednesday.
Faneuil, 26, was expected to admit receiving money or other valuables "as consideration for not informing," according to the terms spelled out in the papers filed in U.S. district court in Manhattan.
Court papers released Wednesday accuse Faneuil of failing to "truthfully reveal all he knew" when he was contacted on January 3 by attorneys for the Securities and Exchange Commission. Investigators are looking into Stewart's sales of nearly 4,000 ImClone shares last December, just before the stock price plummeted after news broke that the FDA would not review its highly touted cancer drug, Erbitux. Merrill Lynch handled Stewart's ImClone sale.
Prosecutors are trying to determine if Stewart was tipped off by her close friend Sam Waksal, ImClone's founder and ex-CEO. Stewart has said she had a standing order to sell the ImClone shares if they fell below $60 a share.
- Multiple Attacks on Gay Men in NYC, Hours After Rally
- WATCH: President Obama Tells Morehouse Grads 'Be the Best Husband to Your Boyfriend'
- LGBT-Inclusive Immigration Reform Good as Dead, Say Advocates
- Op-ed: My Life as a Gay Boy Scout
- Op-ed: Adopting the T in LGBT
- Father of Teen Facing Felony for Lesbian Relationship Says She's Been Targeted Before
Sign Up For Email Updates
- Marriage Equality Recalls of Pro-Marriage Equality Lawmakers Quashed in Minnesota 47 min 39 sec ago
- Commentary Op-ed: My Life as a Gay Boy Scout 1 hour 43 min ago
- Current Issue A Reason for Pride: Gay Parents Are Changing the World 2 hours 17 min ago
- Current Issue A Home of Our Own 2 hours 17 min ago
- Commentary Op-ed: Adopting the T in LGBT 2 hours 18 min ago
- World News Marriage Equality Appeal Headed to Brazil's Supreme Court 1:06 AM
- Mental Wellness Psychiatrists' Group Names First Out Gay Leader May 21 2013 10:04 PM