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Sarbanes-Oxley News & Developments
SEC Sues Father of Former ImClone CEO Samuel WaksalThe SEC assuses Jack Waksal of insider trading, involving sales of ImClone stock.
> > The insider trading case involving former ImClone Systems Inc. CEO Samuel Waksal and Martha Stewart widened Friday when U.S. regulators sued Jack Waksal on charges of selling shares after learning the biotech company was about to disclose bad news about a cancer drug.
The SEC sued Jack Waksal in an amended complaint origionally filed against Samuel Waksal. The new charges also name the sister of Samuel Waksal, Patti, as a relief defendent who did not break the law but benefited from illegal actions of others. The suit charges that Jack Waksal sold ImClone shares belonging to himself and his daughter for about $8 million, shortly before the share price plunged.
Samuel Waksal earlier this year agreed to pay more than $800,000 to partially settle the SEC civil charges against him. While Samuel Waksal did not admit or deny guilt in the civil suit, he plead guilty to six felonies in a related criminal case. Waksal was sentenced in June to more than seven years in prison for securities fraud, perjury and other crimes. Waksal did not plead guilty to criminal charges based on allegations that he tipped of his father.
The SEC expanded civil case charges that Waksal tipped off his father Jack in 2001 about the bad news, and that Jack Waksal then sold about $8 million in ImClone shares held by himself and Patti Waksal.
Source: CNN Money
Published:2003-10-13
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