RE: Martha Stewart and her Merrill Lynch Broker

From: gts (gts_2000@yahoo.com)
Date: Fri Jun 06 2003 - 01:57:41 MDT

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    If even remotely true, the following statement from Martha Stewart's
    attorney reveals a federal government out of control. -gts

    ---
    Statement From Martha's Attorney 
    The following is a statement from Robert G. Morvillo and John J. Tigue,
    attorneys for Martha Stewart:
    NEW YORK, June 4, 2003 -- Robert G. Morvillo and John J. Tigue, personal
    attorneys for Martha Stewart, today issued the following statement on her
    behalf:
    "Martha Stewart has done nothing wrong. The government is making her the
    subject of a criminal test case designed to further expand the already
    unrecognizable boundaries of the federal securities laws.
    The indictment reveals that the predicate for the entire investigation - the
    accusation that Martha Stewart sold her ImClone shares based on inside
    information - has proven to be false. It is most ironic that Ms. Stewart
    faces criminal charges for obstructing an investigation which established
    her innocence. This turn of events can only be characterized as bizarre and
    raises questions about the motivation for such peculiar charges. 
    Though the government has not charged her with insider trading, it alleges
    that public statements drafted by her distinguished attorneys in June 2002
    about the reasons she sold ImClone stock constitute a fraud. These
    unprecedented charges are baseless. The press releases were issued in
    response to Congressional leaks that Ms. Stewart sold her ImClone shares
    because she was tipped that its cancer drug application was going to be
    denied - another allegation that has proven to be absolutely false. In this
    country, those who have been falsely accused of a crime have always been
    free to proclaim their innocence without fear of being punished by the
    government for their resistance. These press releases did little more than
    truthfully deny that she had been tipped on Erbitux. To attempt to
    criminalize such statements and use the federal securities laws to deprive
    those under investigation of the ability to speak out in their own defense
    violates basic principles of American democracy and is most disturbing.
    As to the remainder of the allegations, we are also unaware of any case in
    which a witness has voluntarily submitted to an unsworn interview by a
    federal prosecutor -- and then been prosecuted for allegedly false
    statements that have nothing to do with the stated purpose of the interview.
    In this case, the focus of the interview was Erbitux and Martha truthfully
    denied being tipped as to its status. 
    Why then has the government, after nearly a year and a half, chosen to file
    these charges? Is it for publicity purposes because Martha Stewart is a
    celebrity? Is it because she is a woman who has successfully competed in a
    man's business world by virtue of her talent, hard work and demanding
    standards? Is it because the government would like to be able to define
    securities fraud as whatever it wants it to be? Or is it because the
    Department of Justice is attempting to divert the public's attention from
    its failure to charge the politically connected managers of Enron and
    WorldCom who may have fleeced the public out of billions of dollars? 
    We urge the media to ask these questions - and to consult with legal experts
    on the validity and broader implications of these extraordinary charges. We
    believe such an inquiry will verify that this indictment is unique and goes
    well beyond any other criminal securities law case. We ask the public to
    withhold judgment until the government's unfounded charges are publicly
    aired and refuted. When this happens, we are convinced that justice will
    follow and Martha Stewart will be fully exonerated."
    


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