NEW YORK (Dow Jones)--A government prosecutor asked a federal judge to impose a stiff sentence on Samuel Waksal, the founder of Imclone Systems Inc. (IMCLE) convicted of insider trading.
"It's important to send a message," Assistant U.S. Attorney Michael Schachter said in court Tuesday, describing how Waksal's admitted cover-up of improper trades consisted of "numerous and distinct sets of lies."
Waksal was indicted in August on charges he tipped off his relatives to sell their ImClone stock before bad news sent the company's stock tumbling. The case also led to the indictment of Waksal's friend, Martha Stewart.
Waksal has pleaded guilty and should receive a sentence of up to 87 months under federal sentencing guidelines.
Schachter, however, asked U.S. District Judge William Pauley to impose more prison time when he hands down Waksal's sentence later Tuesday.
Waksal's lawyer, Mark Pomerantz, asked the judge for a lenient sentence, saying Waksal's crime "was not the cynical act of a corporate insider who knows his company is a house of cards," alluding to other recent corporate scandals.
"He was and is a total believer in ImClone," Pomerantz said.
The court has received more than 120 letters of support for Waksal.
Waksal appeared calm as the judge considered the arguments. Numerous members of his family sat in the packed courtroom while waiting for sentence to be imposed.
-By Collen DeBaise, Dow Jones Newswires; 212-227-2017
(END) Dow Jones Newswires
06-10-03 1104ET
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